| LEAD TIMES

Statement Summary

• Recent months have given us some long awaited good news. Raw materials have come down substantially in the past few months. There are signs of them rising but for the most part, materials has stabilized. Equipment however seems to defy the materials market as equipment continues to escalate.

• The micro-chip shortage is still playing a big part in the lead time. Equipment with ECM motors and VFDs tend to have the longest lead times.

• Major equipment manufacturers are requiring an approved submittal to secure pricing, not just a purchase order. All lead times are from an approved submittal.

• Some major equipment players are requiring up-front payment and/or interval payments.