Materials Shortage Q&A with our partners at Beacon

Materials Shortage Q&A

Building supplies are in high demand across many verticals. Drywall insulation, appliances, furniture, lumber, shingles, vinyl windows, roofing products and more. With a massive shortage in materials, planning a large-scale multi-family renovation requires advance planning, budgeting and communication between the client and company performing the work.

Tom Purrazzo, from the IOC Construction, sits down with Jake Muszczynski and Joe Kemph, both leaders from Beacon, to discuss the unprecedented demand and materials shortage across the United States. Beacon Building Products is one of the largest distributors of commercial and residential roofing products.

What is causing the high demand of various products across all verticals?

An epoxy-based chemical, methylene diphenyl isocyanate (MDI), is used primarily to manufacture raw supplies and commercial insulation products but is largely unavailable due to the Texas freeze last winter. This is one of the several reasons causing a global supply chain issue for consumer goods. “Losing that MDI product was a gigantic hit to us”, explains Joe. Many basic building supplies and everyday materials require MDI and it’s causing massive constraints within the industry. Lead times on products were once 10 days to 2 weeks and now could be 4-6 months.

“We’ve seen vinyl siding manufacturers that have had to suspend or delete colors because they can’t get titanium dioxide which is a component that goes into making sure the panel is strong and able to do color fade properly. Just the small components are really causing large issues for manufacturers”, says Joe. Vinyl windows are also in unprecedented demand because vinyl resin is hard to procure.

Although there are struggles for materials, it’s best to hire a company with a reputable organization, like the IOC Construction Company that is partnered with some of the strongest manufacturers.

Why is there such a shortage for materials?

In addition to the demand in manufacturing chemicals to make the products, there continues to be demand on the single-family housing side as homeowners move from urban to suburban.

Products manufactured outside of the US need to clear additional covid protocols and that is causing delays as shipments arrive on the west coast and then get shipped to the midwest.

The manufacturing process has changed for many organizations. Factory lines have less staff on the floor at any given time to follow proper CDC guidelines to accommodate social distancing and additional regulations. This causes delays in the ability to produce materials quickly, consistently, and effectively.

How long will this shortage last?

“It’s by-product and it’s ever-changing”, Joe shares. The shortage of materials is likely to continue into 2022, but there are so many variables that it is hard to pinpoint exactly when this will end.

Jake explains, “it’s a lot of new issues that arose this year that we thought we would never face.” Lead times can really depend on the specific product, color, and manufacturer. Becon is focused on getting products in the 5 colors that make up over 80% of their business.

It’s best to begin a large-scale siding or roofing project with all material accounted for, vs getting started, having to stop and restart again due to materials shortage. At IOC Construction, we work with our vendor partners to commit to materials once the proposal is signed.

Will supply costs stay the same or increase?

With constant demand from building manufacturers being maxed out on their products, it’s likely we will continue to see prices rise on supplies.

According to the National Roofing Contractor Association (NRCA), construction material prices are 23.1% higher than a year ago (as of August 2021). Tom advises that “planning ahead on capital expenditure projects is extremely important for any board or association since prices will continue to shift. We’re at the mercy of the market.” Financing may be a necessary component for HOA work in the next year. To get the most value out of your multi family renovation project is to buy today. Supply and demand is proving the pricing will continue to increase.

What type of communication can we expect from Inside-Out?

“At IOC Construction, we strive to communicate to all stakeholders even when there is no movement on a project,” says Tom P. “Beacon is a great partner of ours and is helping us deliver on every promise our team makes.”

On a typical multi-family project, our team will communicate with board members, property managers, clients, and homeowners on a frequent basis. Internally, our Business Development team communicates with estimating and production to ensure we’re all aligned on the project scope and timeline.

While lead times on materials are taking longer than usual, strong communication continues to be the key driver in a successful project with the IOC Construction Company. If your building is actively having an issue, it’s best to decide on your contractor and move forward ASAP. As an HOA board member, waiting until the next meeting causes additional delays in material and potentially a price increase on the material needed.

Request a bid to get started on your multifamily renovation. The IOC Construction Company specializes in painting, roofing, siding, maintenance, flooring, and more.