Understanding The Supply Chain Shortages
If you are re-modeling your home this year you may have run into supply chain issues, possibly causing delays and increased pricing in products. This global supply chain shortage in the industry has many buyers frustrated, but the good news is, its not forever. Lets breakdown what is causing the shortages, what it means for you, the buyer, and when we anticipate it to subside
The problem is pretty simple; supply and demand. With the start of the COVID-19 pandemic, people began spending more times in their homes and the desire to remodel skyrocketed. Mix this with a global shutdown in 2020, as well as restrictions at facilities and you have the perfect storm of supply chain shortages. The demand has simply exceeded the supply. Contractors are having to give longer lead times simply because it is taking them longer to acquire your materials. We are seeing 4 common shortages: Windows & Doors, Appliances, Lumber, & Furniture.
With windows & doors we are seeing a significant shortage. This is mainly caused because there is a shortage of glass industry wide. Most suppliers rely on the same manufacturers and the backlog of supply caused by shutdowns has ravaged the supply chain for windows, causing weeks long delays. While many of these products are manufactured in the United States, we are seeing that factories are at 100% operations, but hesitant to build more factories for a supply that may only be pandemic related and temporary. With doors this is presenting a unique option to salvage and repurpose old doors, and checking local home stores for what they have in stock.
One of the biggest shortages we are seeing industry wide is lumber. Lumber has been in extremely high demand the past year, which has caused accessibility issues as well as prices to skyrocket. This shortage is a cause of several factors, both pandemic and environmental related. Between a record wildfire season in 2020 and pandemic shutdowns and regulations, as well as a boom in new homes being build, lumber has become expensive and hard to come by.
Similar with windows & lumber, we are also seeing an increased demand and low supply of appliances. The market for appliances was completely overwhelmed by the demand. The inventory simply wasn’t there for new appliances. Many companies have shifted their production to focusing on limiting the lines they carry but producing more. What does this mean for the buyer? Plan ahead. Be strategic about ordering your appliances, order them first, and remember that wait times will be longer than usual.
So when will this end? The good news is, the industry thinks this is only temporary and should resolve itself. Assuming customer demand returns to pre-pandemic levels, we could see this slowing down by the end of the year with a hopeful return by this time next year. Remember that planning and accounting for delays is key. Make sure to leave yourself enough time in your project for these delays.
Returning this Fall will be the Webinar Series. You will be able to educate yourself on all topics design, from the comfort of your home. Stay tuned for dates and a list of topics!