TRG | The Bottom Line – 4/16

As this quarterly’s Building Product Survey title suggests, “Hello Inflation, It’s Been A Long Time,” inflation (finally) is a hot topic that can’t be ignored. While economic pundits ponder when inflation will really start heating up, the construction industry is screaming that it’s already here. Lumber housing package pricing is up four-fold from last year’s levels, the steel stud industry has implemented a 10% price increase each month this year, and wallboard, insulation, resi roofing and flooring industries have all announced at least two price increases to be implemented in the first four months of 2021. Increased demand, tight supply and a strained supply chain is driving these pricing actions. Certain industries, including insulation, see no end in sight as plants are operating at full capacity utilization, and that industry remains on allocation, just as we head into the peak construction season.