Supply Chain Challenges

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.

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

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.

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.