As we enter 2022, we are in an unprecedented time of building supply shortages. For everyone involved in the construction industry, the nicest way to characterize this past year is “problematic”. Brought on by a deadly and persistent pandemic, miscalculations, the shutdown of factories for nearly a year in some cases, severe disruptions in the construction materials supply chain, increasing demand from homebuyers, and the explosion of work from home spaces needing to be expanded or built out, building material supply shortages have, at times, nearly brought the industry to its knees.
The National Association of Home Builders (NAHB) has announced shortages in lumber, vinyl siding, doors, replacement window materials, etc., and prices are set to go up. These shortages are more widespread now than at any other time since the NAHB started tracking supply issues in the 1990s. In the NAHB’s 2021 survey of U.S. builders, it found more than 50% of builders were having trouble obtaining 21 of the 24 listed building materials. It’s a simple problem of high demand and very limited supply.
Not only are building materials in short supply, but the materials industry is undergoing severe difficulty in finding workers skilled enough to fill open positions. In the chart below, you can see what percentage of materials are facing shortages. This includes the products provided by American Eagle Builders.
What Does This Mean?
Unfortunately, with shortages in production and supplies, we are looking at significant pricing increases. With at least 15% – 20% increases, we are going to be seeing quite the jump.
Why Is There a Shortage?
The pandemic is the primary reason for the disruption in supply and distribution, but with interest rates at historic lows and tons of home building and renovation going on at the same time, it has turned into a perfect storm. With pandemic regulations in place for social distancing, there is a limitation on manpower possible for the production of materials. These limitations aren’t just nationwide but worldwide as well. With material delays and the decrease in manpower, we are experiencing a decrease in production. Additionally, distribution within the US has also encountered challenges due to a shortage of transportation and drivers that are available.
As people have been spending more time at home in the pandemic, many have been looking to upgrade and improve their homes. Energy-efficient upgrades are trending. People are looking to upgrade and save money. Old doors and windows can account for a large percentage of an energy bill. As a relief to those issues, our products provide some of the highest energy cost savings you will find in home improvements.
If you are planning to upgrade with new vinyl siding, energy-efficient windows, a new entry door or an insulated patio cover in Dallas-Fort Worth, Texas, we can help!
Don’t Delay Your Upgrade
If the shortage has you thinking you should wait for your improvements, we are here to tell you the time to act is now! We are living in uncertain times. Placing your material orders now not only locks in the current pricing (before it all goes up starting in February) but puts you in the queue to get your materials sooner. Everything will become a first-come, first-served with building materials. We want to be sure those who are wanting these improvements are served soon and get the best pricing we can get you!
While we can’t control production, we want to do what we can to help. At American Eagle Builders, our estimates are always free. A few home improvement companies are starting to charge for estimates as gas prices increase. We want to help you act now to lock in your pricing, even after prices start to increase. We can assure you once prices go up, we likely won’t see them come back down for quite some time, if at all. Prices love going up, but hate coming down.
Everyone at American Eagle Builders is staying focused on providing great products and customer service no matter what comes our way. Because of the information we have covered here, we want to thank you for being understanding of the timeline and look forward to helping you with your projects in this unprecedented time. We continue to do our best to be transparent in all that we do for our customers. In the end, we are all in this together! We are always grateful for our customers! We believe we truly have the best ones!