Message Thread:
Material Shortages/Pricing
6/8/21
Just curious if anybody else is experiencing a supply chain issue right now? Some of our lumber mills are saying they can't get logs until maybe fall, and they have no idea on price other than to expect double or triple the cost we're used to. Is anybody else experiencing madness like this?
6/8/21 #2: Material Shortages/Pricing ...
Not being able to get logs sounds like BS to me. Just another excuse to raise prices and make people panic buy. I loved the idiots putting gas in plastic bags:). This will only hurt the people working for the middle class and lower who can’t absorb the price hit. A family member is a builder of pole buildings and has lost several jobs where the price has jumped $10,000 in material alone. Sooner or later it will even out, but until then, I’m going to grab what I can while the grabbin is good.
6/8/21 #3: Material Shortages/Pricing ...
Website: http://www.sogncabinets.com
We let fools con the population into screwing up the economy and supply chain a year ago.
We get what we deserve. If we don't correct course soon though, you might find yourself smashing your neighbor in the head with a rock so you can eat. We'll think back longingly to the good old days of paying too much for lumber.
6/9/21 #4: Material Shortages/Pricing ...
agreed. I can't believe the price gouging going on. I don't understand how any building is continuing.
6/9/21 #5: Material Shortages/Pricing ...
Price gouging is an under statement. I paid $72.5 for a sheet of 3/4 ranger MDF yesterday!
This is not sustainable, Good luck everyone
6/9/21 #6: Material Shortages/Pricing ...
I hate the way that people always try to make a political statement in a professional forum. Se la vi. If financial experts are frequently wrong us cabinet makers should be a bit more humble than to think we have all the answers to global problems.
Back to the topic: In South Texas, having been to our main three suppliers of hardwood and sheet goods, we seam to mainly have international supply problems. Baltic Birtch, foreign made hardware are experiencing supply issues can't be bought in bulk. Domestic hardwoods and plywoods however are still well stocked, but $1-2 a bdft more than normal.
6/9/21 #7: Material Shortages/Pricing ...
Here cabinet ply is following the construction material at the moment. Did a large job with few hundred sheets of 3/4" domestic core (Rockshield) 3/4" Natural birch (B2) a month or two back and we were at $56+ a sheet, right now, same material $77+. Hardwood is up here but not miserably but I am located in the hardwood mecca of the US. Hardware has not been much of an issue for us but we use ZERO asian/offshore stuff. Salice, Grass, Blum, all seem to have viable supply here. We are getting monthly single digit percentage increase notices from Formica, Wilsonart, etc.. Livingstone just hit their first on solid surface on material and freight.
To the other Mark, the reason why you see embedded political statements is to try as much as humanly possible to maintain some semblance of etiquette while you have to stomach working daily in a system that is pretty much a total sham. This price gouging is real. And right now everyone, who is anyone, is getting on the train to rape before the plug is pulled on the bathtub. We in the business, and the consumer, are getting clobbered by manufactured profit taking just like we always do from the "patriots" of our nation who sail off on their private yachts after legally price gouging "their beloved country" all under the auspices of "market forces".
There is no conspiracy theory. Materials were locked down at the start of the pandemic by very very smart individuals with great foresight. I dont begrudge their ability to profit from this mess but I do greatly question their patriotism.
Is that cryptically embedded deep enough for ya?
6/9/21 #8: Material Shortages/Pricing ...
Website: http://www.sogncabinets.com
Mark, there's no politics in fools being scared of the common cold. Get off your high horse.
6/9/21 #9: Material Shortages/Pricing ...
To call COVID-19 "the common cold" is demonstrably false regardless of your thoughts on the economic measures taken to combat its spread.
To answer the question, sheet goods have been harder to find and I'm paying about .50/SF more than last year. Hardwood prices have remained pretty stable in my area (suppliers in Long Island, NY and Connecticut). Blum hardware has been hard to get in a timely manner from my supplier but given my low volume it hasn't been a huge issue to work around. Agree with the others who say it sounds like BS to say the lumber mill won't have logs. Seems like an excuse to up prices exponentially down the line.
6/10/21 #10: Material Shortages/Pricing ...
YIKES!!! Back to the bids lol.
6/10/21 #11: Material Shortages/Pricing ...
Website: http://www.sogncabinets.com
Oh do demonstrate then. It's been a BS control tactic from the beginning, and the media whores are more than happy to capitalize on the fear mongering.
Numbers don't lie.
6/10/21 #12: Material Shortages/Pricing ...
"Numbers don't lie"
Oh... but they do.. they do... Just like the pipeline ransomware being resolved in 5 days and the US govt has reclaimed the bulk of the funds to the poor "Colonial" Pipeline... Likely for zero expense to Colonial (yet we all should pay for some goofiness like lifelock?). And low and behold I fueled up just this morning for $3.10 a gallon as opposed to the $2.69 I was paying the nanosecond before the ransomware incident which was on or around 5/10/21 and subsequently resolved 5 days later on or around 5/15/21 and its now 6/10/21 and we've been paying, and paying, and paying, all along. The numbers absolutely lie because they are fed to you. Crack open another case of Dom.
Careful with your nose down chasing those yachts off the end of the dock. Your not going to get lucky like a deer in the rut and get to break off a piece, your gonna wind up in the drink swimming back to shore like a dog with a bunch of stinky brown on your nose hearing the clinking sound of champagne glasses off on the horizon.
6/10/21 #13: Material Shortages/Pricing ...
MarkB Those numbers don't lie either. That's just you being raped, and taken advantage of over nothing. Just like Covid-19. Look at the morons filling bags with gasoline, and the guys buying up futures laughing the whole time for more fun.
I did a job for a guy last year who was paid to make concerts more "green". Just about the time when the covid stuff was showing to be nothing and the specie was in no danger. I asked him how bummed he was about covid having such a low mortality. He looked at me puzzled, and asked what I meant. I said that if you're an environmentalist, truly, then the single greatest threat to this eco system in your mind is humans. Taking the population down by a few million isn't even a rounding error. Now had the rona taken the population down to a few million, then ol' Mother Gaia has a chance. Turns out he's a fraud. lol
6/11/21 #14: Material Shortages/Pricing ...
All the current supply disruptions, including lumber, are temporary. I don't know enough about the plywood and lumber industries to venture a guess as to when supply will come back into balance with demand. It's not like plants have been dismantled, so I can't imagine it would be a very long lag.
I'm no conspiracy theorist, but given what the industry lobbyists have done to slap tarriffs on imports, I wouldn't put it past them to engage in a certain degree of collusion to maintain artificially low supplies and high prices for as long as they can.
6/11/21 #15: Material Shortages/Pricing ...
The lag will be as long as they can possibly squeeze until things start to clam up (which the are beginning to at the moment here). People and even municipalities in our area are putting things on hold, contractors cant bid long term confidently with the volatility, supply houses here are saying they are seeing a substantial slow down which is normal for this time of year but pretty heavy due to pricing. Ive had several bid projects go on hold or set for re-bid and the city/state says cleary they are going to re-evaluate based on the prices coming in.
The pricing will never come back just as it never has before. Once they get the consumer mindset ramped up to the higher prices it may come back a bit but never to where it was.
Ratcheting up the numbers has always been the norm. The big difference now is, the land owner (trees), the logger (cuts, skids, hauls the trees), the sawmill (saws/dries), the broker, are not getting much more with these prices. A very close friend is a contract logger for the mill we pull KD from. A mill with 3-5 million board feet in production at any time. And the logger, the mill, are seeing zero increase in their income while prices are through the roof. The dollars are floating away on the yachts. Given someone builds those yachts and the multiple houses but the typical scenario is when prices go up, they go up both up and down stream.
How many of you have raised your cabinet prices 40% and are getting paid? Or are you just killing yourself to meet production at the same rate pre-pandemic? Law of supply and demand. If materials go up 40% your labor should likely have gone up same as their? No? Have you raised your rates 40-50-60-100% because things are booming?
6/12/21 #16: Material Shortages/Pricing ...
Hardwoods in canada fairly stable but supply is tight. Softwood prices through the roof which is a sham because canada is a net softwood exporter and we have plenty of logs. Price gouging at its best! Even in the huge building booms of the past we have never seen prices like this and they will never go down. Most plywood and melamine in canada is US made so we are feeling that pain.
6/13/21 #17: Material Shortages/Pricing ...
"How many of you raised your prices 40% and are getting paid"
I'm not picking on you, but I raised everything 13% across the board. I think that was covering my cost? But now the last truck I got, came with a full on raping on plywood, so now I'm second guessing that.
I added a variable to my pricing to adjust everything to try and account for the swings, but I'm thinking I'll need to be more aggressive with that as well.
6/14/21 #18: Material Shortages/Pricing ...
Sounds like if its an across the board increase it may cover the increased costs. Rough numbers on my end are not construction trade nutty but fuel here is holding at up 15%, materials are varying between +15-20%, Laminate has gone up about 15%. Solid surface just announced 11% so 13% would cover a chunk of that and a bit more with the extra on your shop rate.
My point was more the law of supply and demand. Everyone is swamped, held hostage paying more for all their materials, interesting to hear who has that power in their cabinet shop to just say demand is up, prices are up, love it or leave it.
My guess is the bulk of shops are a bit cautious to kick the doors off the hinges and raise rates and are lucky to get compensated for the additional material cost but who knows. Hopefully the price of cabinetry goes through the roof and people keep paying.
6/15/21 #19: Material Shortages/Pricing ...
According to the Wall Street Journal, nothing to worry about.
Lumber Prices Falling
6/15/21 #20: Material Shortages/Pricing ...
The pertinent line in the article is "The rapid decline suggests a bubble that has burst and the question now is how low lumber prices will fall". Consumers (including contractors) are fed up and the clam-up started weeks ago. Id guess that shot over the bow, another from Deutsche Bank, and likely a myriad of other indicators has given the gougers a bit of pause hence taking a step back. These people are not patriots in any way shape or form.
6/18/21 #21: Material Shortages/Pricing ...
Even hardware. All Blum slides and locking devices are back ordered until July at Wurth.
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