Construction Boom Leaves

Drywall In Short Supply

While the burgeoning housing market i-s r6ceiVing kudos for aiding our robust economy, the boom is also being targeted for causing nationwide drywall shortages and record prices. This despite factories operating at full capacity of roughly 27 billion sq. ft. of board annually.

This time last year, wallboard was selling at $9 a sheet, compared to $11 today. Worse, commodity scarcity is producing costly construction delays for contractors and their customers, who must pay additional interest in building loans while their residential or commercial projects await completion.

The shortages are being felt especially in the Houston area and throughout the Southeast. "I've got at least 25 houses that I can't get boarded," moans Bob Pasarela, owner of Pasarela Drywall, Hudson, Fl.

He's not alone. Houston's Emerald Builders has 79 houses awaiting drywall, with plans to continue building 15 new homes a week. Sadly, the product isn't forthcoming anytime soon, never mind the approaching peak construction season. "I don't know what I'm going to do come June," laments vice president Craig Dudley.

Contractor desperation is such that many have resorted to paying retail, only to find that big boxes have limited how many sheets customers can purchase. "You start to beg," notes Christin Cupp, Beazer Homes USA Inc., Tampa, Fl., who reported that a local Home Depot would sell her only 2O boards, not enough tojusti$ the expense. Depot spokesman Jerry Shields understands customer dissatisfaction, but notes, "We can't get as much as we need either."

His words were echoed by the company's Rod Johnson, a Thmpa, Fl., merchandising manager, who sighed, "I wish we could take care of everybody." These heartfelt musings will be of little use to local subcontractor Circle Industries USA, which is frantically trying to locate over 2 million sq. ft. to complete a Marriott hotel and convention center. The firm's president revealed that drywall shipments are running four weeks behind schedule.

With single family homes at a2D-year high of l.4l million units, an unusually mild winter has compounded the problem, permitting continued construction during a period when bad weather normally prohibits such work. The country's remodeling fixation has further reduced supplies.

Happiln relief is on the way, although not immediately, USG Corp., the nation's largest sheetrock producer, plans to open two more plants by year's end, with a third coming soon after. Currently, the firm is operating 23 hours a day, according to a company spokesperson, a figure that has continued unabated for the past 15 months. In addition, Georgia-Pacific Corp. and Lafarge Corp have new plants slated to debut later this vear and next.

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Andersen Acquires lts Largest Distributor

Andersen Corp. has acquired Morgan Products Ltd., Williamsburg, Va., the leading distributor of its wood windows and patio doors.

"This acquisition is consistent with our plan to strengthen our distribution system nationwide," said Andersen Corp. president and chief executive officer Donald L. Garafalo.

Morgan Products, a $740 million publicly held company with over 2,000 employees, became Andersen's leading distributor last month following its acquisition of Adam Wholesalers.

The sale is expected to close by mid-June.

Andersen Corp. is a privately held company.

Structural Panels Achieve Record Production

North American structural wood panel production increased 5Vo last year to a record 38.7 billion sq. ft.

I-joist output rose l27o to 701'5 million linear ft., while laminated veneer lumber production jumPed l3%o to 42.7 million cu. ft.

Due to decreased exports to JaPan, glulam production slipped 3Vo to 3O6 million bd. ft.

During 1998, seven U.S. and Canadian structural wood panel mills began production, changed hands, or relocated, including: LouisianaPacific's new OSB mill in Carthage,