Do you remember the early days of the pandemic when businesses were shuttered, and employees stayed home for weeks or months at a time? Outside of businesses deemed essential, production simply stopped on many products, and that stressed the supply chain.
Even when businesses were able to stay up and running, there was a disruption with logistics or components that continued to throw cogs in the wheel. Navigating production in the face of a global pandemic has been challenging, to say the least, and now roofing contractors, homeowners, and developers are feeling the squeeze. Let’s take a look at what this means.
Increased Prices
There has been a push-pull effect on industry prices. On one side, the pandemic caused a material shortage, and on the other, an active storm season has sharply increased demand. In January 2021, and in each quarter after that, suppliers began circulating price increase letters as they struggled to keep up with the growing demand. As contractors bid jobs and ordered materials, materials costs continued to climb. Suppliers initially softened the blow with a projection that prices might stabilize by the third or fourth quarter, but now that we are approaching the third quarter, it feels like higher prices might be here to stay.
Longer Lead Times
Another repercussion of a supply shortfall is longer lead times. Pre-pandemic, contractors could order and receive all of the supplies they needed within two or three weeks. But since supplies are limited, and demand is increasing, there isn’t quite enough to go around. It’s taking suppliers longer to fill orders, which delays projects and compounds the concern of higher prices since pricing is based on delivery date and not order date.
Delayed Projects
It stands to reason that if suppliers are struggling to fill orders, contractors are also struggling to meet completion deadlines. Compromising on material selections based on availability can help lessen the burden of delays, but at this point, they seem almost entirely unavoidable. While pricing may never return to pre-pandemic levels, project timelines should improve as the supply side catches up.
Product Shortages and Limited Selections
While manufacturers work hard to backfill shortages, the most effort will go to producing the most popular colors and styles. What this means is that product offerings may slim down temporarily, and specialty colors and styles may become completely unavailable. Special orders may be completely out of the question.
The entire roofing industry is feeling the impact of COVID-19 disruptions. But side-by-side, metal roofing is coming out on top with more manageable price increases and shorter lead times. Metal roofs have fewer components, often requiring just the metal panels, fasteners, and underlayment. That means there are fewer opportunities for supply chain delays.