Supply chains continue to struggle with enough capacity to meet demand causing material shortages, extremely long lead times and rapid price increases. We anticipate this situation to continue into the 3rd quarter of 2021. Since the beginning of the fourth quarter of 2020, we have experienced price increases indicated below:
During the pandemic, a fair amount of steelmaking capacity was taken offline due to a sudden drop in demand. As demand has returned, much of the idled capacity has remained offline. This has caused extended lead times and rising prices at unprecedented rates. Recently, price increases have been implemented with no prior notice making it difficult to plan.
PVC suppliers also halted production amid the pandemic and then they were hit with record demand. To compound the issue, hurricanes in the Gulf of Mexico and later freezing temperatures disrupted the supply of resin to PVC extruders. Currently, many PVC suppliers have placed customers on allocation and limited the styles of products they produce because there simply is not enough capacity to supply every order.
The Aluminum and Wood markets have also seen significant increases and extended lead times for similar reasons.
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