In recent months, Spahn & Rose contractor and builder customers have faced an unprecedented marketplace hampered by shortages and high prices. There is good news in these difficult times, though: Homeowners have increasingly shifted their disposable income toward improvement projects, and home values are on the rise. There also continues to be a robust market for new construction and remodeling alike.
“We are certainly optimistic about the upcoming year,” says Steve Parisee, Spahn & Rose’s Vice President of Sales and Marketing. “Our industry has been more fortunate than most, as interest rates have remained low and consumer demand continues to be strong.”
Unfortunately, that demand surge has made a profound impact on the market for building materials, with lumber, drywall and oriented strand board (OSB) subject to shortages and historic price increases. Lumber prices, for example, have skyrocketed 180 percent just since June 2020. This has helped boost the cost of the average new single-family home by more than $24,000, according to the National Association of Home Builders. Since this past fall, we have also seen significant, above-average price increases for manufactured building materials such as windows, roofing, metal, vinyl products and drywall.
The marketplace remains unpredictable. Some experts foresee lower prices stemming from lower demand in winter. However, our industry contacts indicate otherwise.
“Recent actions and the latest communications from mills and primary suppliers indicate that prices won’t come down anytime soon,” Parisee says. “We know this puts increased pressure on you and your customers as you try to remain competitive. I want to assure you that we at Spahn and Rose are working diligently to keep pricing as low as possible without sacrificing service levels.”
One place to turn for solutions during these unpredictable times: your Spahn & Rose sales representative or the general manager of your local Spahn & Rose location. They can help you find potential cost savings, lock in pricing and establish ways to communicate these pricing and supply challenges to your customers. Before your next project, talk to your sales rep for ideas about how to manage prices and help ensure that building materials are ready when you need them.
In addition, Spahn & Rose contractors and builders can rely on our usual suite of services, such as the online home Visualizer, WebTrack bill pay and free marketing services such as the Virtual Home Showcase.
“I want to thank all Spahn & Rose customers for your continued business,” Parisee says. “Like you, I am ready for our businesses to get back to normal as we address and overcome COVID-19. I am looking forward to shaking your hand, having conversations at our cookouts or playing some golf with you in the future!”