Word on the Street
Product Shortages and Pricing
Submitted by Mike Miller, Director of Education
Wow, talk about job stress, and the conversation quickly turns to “product shortages and pricing.”
These factors can stretch one’s mental anxiety level to the limit. In 2020, the shortages started to show up, and deliveries seemed to get a little worse each month. Prices inched up on most building products also, and today it is a struggle to get locked on a price for extended date delivery of building supplies.
The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output.
That is not a rosy picture now when you look at lumber and steel prices and prices on these products are expected to peak later this year according to financial analysts at American Building Contractors.
A few ideas that may help the stress level:
• Frequently talk to your suppliers
→ When requesting pricing. Make your needs clear (quantity, pricing, and delivery date).
→ Capitalize on best pricing for quantity. Your money may grow faster invested into material based on projected cost increases.
→ Request deliveries on a timely basis
→ Seek competitive prices always.
• Review your inventory holding area security. Thieves are becoming more industrious.
• Follow delivery dates for material to projects closely. Immediately follow up on shortcomings.
• Encourage employees to fully engage in a ”no waste” program with financial incentives.
Always do your best and know situations change. What once seemed impossible or out of reach will, at some time, become accessible to all.
Have a Great Summer!