Shingle Price Increase

MEL

My supplier said that shinlge prices may go up another 10% in March. Do you think it will happen?

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MEL

HWCostruction

Yep. ABC told me the same thing. First week of March. Told me it was due to supply and demand this time and not crude oil prices.

Grumpy

Same deal here. I don't care so long as everyone elses gos up too. Supply and demand huh? Must mean it's going to be a good year.

JTW

I was told the same thing, they say they expect asphalt to become scarce as the new Spending plan(not a stimulus) calls for a bunch of road construction etc. So if it does not happen does thatmean the price goes down????? Doubt it!

Bill Z

Same here, although I think it's more B & S than supply and demand. Concrete guys fed the same line when they went up $12.00 per yard this month. Let's see what it does to the "demand".

Patrick

They are talking shortages again this summer.

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Originally Posted by Celtic
Like I said...I'm sure you are very good at what you do ~ whatever that is and where ever it happens.

J-Peffer

The shortage is not of shingles, the shortage is of asphalt.

The amount of oil used to make asphalt is limited, most is used for gas.

What is made....we are all fighting for and so are the road construction crews.

concretemasonry

When the market demand goes down, there are two choices:

1. Get more for what you can sell to keep a positive cash flow

2. Shut down or decrease production and sell what inventory can be sold without making more.

The second is probably closer for the garden variety shingles. Unique, quality products will continue to have a small, but stable market.

In either case, the manufacturer has certain costs that will go on and some key employees and older union people will keep going for the necessary production.

It does not make sense to produce a commodity product like shingles when the market is anticipated to be weak. The only draw-back is if the crystal ball for the future is not clear, a manufacturer will get caught with his pants down and not enough inventory.

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Dick

Engineer, designer and consultant recently active domestically and internationally on construction and design in about 35 countries.

JTW

The only issue I see with those philosophys are-
1)If a competitor breaksdown and gos after work, you will not be competetive and in the long term if they do there job well, you will loose market share and therefore this decision will cost you greatly. The same reason why one needs to market more when the economy is weak, because the if you do not, the other guy who does will take your market share.
2)If you limit supply and cannot meet the customers needs in the timetables they request, they will seek alternate sources for similar materials, as well as you must produce enough product to have a cost benefit of the production run, in other words you must amortize your fixed cost over the length of the production run.

Ed the Roofer

I mentioned this before in a thread 1 1/2 years ago, when the prices originally started to increase substantially.

Now is the time to consider Price Escalation Clauses and Material Price Allowances.

We are not so solvent, as an industry full of small and mid-sized roofing contractors, that we should be expected to carry the burden of sudden shifts in the market pricing of the commodities that we sell and install.

Yes, shingles should now be considered a commodity.

Prices can and have increased over 10-15% one month, followed by a similar price increase the following several months and that risk is not worth bearing on a fiscally sound business.

Ed

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precisionbuild

I agree Ed. I also try to get the materials bought and to the job ASAP. Kind of a push to commit. Once we're signed and have a deposit, stuff is delivered and covered/protected.

ribuilder

I use ABC supply alot too...told me the same thing. I heard something like $85-$90 a square. My partner landed about 400 square of roofing and gave them a price accordingly...up goes the prices, down goes the proffit. I think they are working something out. Definatly a good idea that was mentioned about the clauses for pricing and materials.

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remember what you did right, then do it again!

Brock

commodity

Flatrooferstl

I wouldnt doubt it

trptman

Thats a bunch of BS,... any excuse to raise prices is what it is. demand is down and I don't see it coming back for a while. The "stimulus" plan won't work and from what I understand, there's a lot of that spending that doesnt' even happen right away. The price of oil is waaay down and demand is waay down. Any significant raise in prices is not related to that, no matter what they say, IMHO.

JTW

Agreed, all that plan does is take out a loan in the name of our children for which they get to repay!!!!

roof-lover

Change we can believe in...

iceman61

Shingle prices are going up here too. What I've been told so far as of yesterday:

Tamco - 10%
CertainTeed - yes but no announcement yet as of how much 8 to 11%
Owens Corning - yes but no announcement yet as of how much

Everything is going up March 1st & 2nd