Many companies had shutdowns or reduced production during the pandemic, leading to reduced material in the supply chain. This short supply, combined with the increased demand for home renovations, is having some unique impacts.
As a manufacturer, we are experiencing price increases and shortages from our suppliers at an extraordinary rate. Because of that, we want to share what to expect with your next renovation project:
Project timelines may extend, or recommend being pushed until next year, as product lead times increase. Contributing factors are high demand, material shortages, labor shortages, and shipping delays. It’s not just in the building segment that shortages are happening. According to the Woodworking Network, everything from consumer electronics, textiles, plastic & rubber products, and metals are feeling the pressure. Many of the items listed above are required to complete home renovation projects.
The age-old story of “supply and demand” at its best. Project pricing may require surcharges, become valid for shorter timeframes, given in ranges, or worst case, no longer guaranteed— all due to the dramatic fluctuations. Wood components used in the construction of houses, cabinets, and furniture have skyrocketed. The graph below depicts wood prices over the last year. According to Bloomberg —”Boards used in residential construction have jumped more than 250% since last spring.”
With availability and pricing expectations changing rapidly, it’s important to stay flexible on timelines and product selections. Supply shortages are happening at an unprecedented pace. Being flexible on alternative selections may be required at some point during the process.