Labor shortages, supply chain disruptions, market conditions—the events of 2020 were immense and far-reaching. Areas were impacted that none of us could have imagined.
For roofing contractors, in early 2021, we were informed that shortages in raw materials were going to affect the roofing industry when it came to availability of roofing materials. By mid 2021, lead times for commercial supplies were pushed from two to four weeks (normal lead times) to 12 to 18 months.
As a business owner, you may be wondering if the impacts of these roofing supply chain shortages are still being felt today in 2023. Take a look below for helpful answers.
What raw materials have been impacted by the shortage?
The shortage affected mostly commercial roofing supplies, including insulation, adhesives, and screws.
What caused the shortage?
Some of the supply chain crisis was caused by shutdowns in 2020 because of COVID, but it was also because there was a concentration of manufacturers in certain products. For example, all of the major commercial roofing suppliers sourced screws from the same manufacturer. Once that manufacturer experienced shortages in metal supplies, they couldn’t make enough screws for everyone.
Are these supply chain issues likely to end soon?
Good news! The availability of material supplies is back to normal. High prices, however, have not changed.
The initial uptick in demand for supplies made material prices increase by as much as 100% for some products. These prices have not come down yet, resulting in higher prices for roofers and, in turn, you.
The good news is that if you have a commercial roof warranty, you may be covered for much of the cost. Our tips on how to use your roof warranty can help.
Should I expect lead times to shorten?
Lead times have gone from 12 to 18 months back to normal lead times of two to four weeks! Why?
Shortages in 2021 led many commercial roofers to purchase as much inventory as they could at that time, and many roofing companies still have inventory on hand. Consequently, orders for commercial roofing products have decreased significantly.
In addition, the flow of raw materials has returned to pre-pandemic levels, allowing manufacturers to produce at normal levels again. More inventory is also now available because many projects were put on hold due to uncertainty in the economy. This reduced demand and freed up inventory for the construction industry.
Ready to begin your roofing project?
If your business is in need of roof repairs or a roof replacement, call the trusted experts at Hopkins Roofing today. With lead times on commercial supplies back to normal, we are ready to get working on your roofing project!