Worldwide Materials Shortage
Unprecedented shortages are being announced about the U.S. Roofing shortage on materials and products as well as significant price volatility. The National Roofing Contractors Association (NRCA) has made an update to insure all of its members have the right knowledge to communicate with facility managers, building owners, general contractors and construction mangers involved in the roofing purchasing decisions. At Classic, we want to be able to share all updates so that you can understand just how the industry shortages effect your property projects or decisions.
What’s Happening Now
During this past decade, the U.S. roofing industry has experienced a period of moderate growth. Compared with other industries, most roofing products and materials are manufactured in the U.S. and raw materials are made and delivered by U.S. suppliers and distributers. In many regions, additional roofing growth has been limited by a lack of adequately trained field personnel. At the same time however, energy code requirements have resulted in a demand for more energy-efficient roof systems. Although the global economy has some effect on many purchasing decisions, all of this is largely driven by the U.S. economy, interest rates, and consumer sentiment. With the pandemic affecting all of this, shortages are becoming more inevitable.
Inventory Shortage Means Just-In-Time!
During the uncertainty of the pandemic, many roofing companies and construction companies scaled back on their inventory with expectations of decreased business. However, with such a high amount time spent at home during the pandemic, it comes as no surprise that homeowners and multi-family homes saw a huge rise in reroofing and roof replacements. Combined with the severe weather like hailstorms and rainfall that leads to leaking, the roofing industry saw record highs in asphalt shingle demands for installs.
As demand came to an all-time high, inventory for many in the industry dwindled quickly to meet the needs of homeowners and multi-family buildings alike. Manufacturers have struggled to keep up with demand, sending prices sky high and dealing with their own supply and material shortages, putting the industry to a point where they must rely on receiving inventory on a job-by-job basis – and at times, not receiving enough inventory at all.
Price Increases
The availability of materials causes the pricing of roofs and roofing materials to fluctuate, wildly. Many companies are instituting new pricing policies that increases their prices across the board to cover those potential higher costs regardless of price at the time of availability. Classic Construction’s response is to quote an estimated cost up front with and adjust the final cost of a new roof materials based on the cost of the materials at the time of availability, not at the time of the quote. This allows us to give you the best pricing possible.
In Conclusion
For homeowners and property managers of multi-family homes alike, delays in roofing projects have caused frustration and more uncertainty as the industry struggles to keep up. Despite all of these factors pushing against the success of the industry, our team at Classic Construction continues to go above and beyond to meet the demand and high expectations of our clients, day in and day out.