TRG | The Bottom Line – 2/19

Punxsutawney Phil’s 2021 prediction of 6 more weeks of winter has certainly played out throughout much of the U.S. this past week, hitting regions unaccustomed to extended snow and ice, including the Southeast and Southwest. Texas has been hardest hit, likening this to a “Katrina-Scale Crisis,” with wide-spread power outages, burst water pipes, and ice dams. Many industrial companies, ones that use more electricity/power, were shut down (i.e., cement plants to concrete operations), and individual residences faced rolling blackouts. Once the snow and ice melts, residents face clean-up, further tightening an already stretched construction market. From shortages of door components to spikes in lumber prices, TRG industry contacts share that virtually every step of the construction value chain has been impacted. As insurance claims come rolling into Texas, there will be a big need to repair damage, further increasing demand for drywall, subflooring, plumbing, and doors & moulding to name a few.