Cox Engineering January 2024 Market Report

| MARKET UPDATE JANUARY 2024

WHERE THE BEST ARE BUILT

| SUMMARY • The volatility of the market has improved since Covid.

However, commodities (sheet metal in particular) are trending back up, which is a shift from 6 months ago.

• The UAW strike has affected our industry due to increase in Chinese and Indian production and decrease in US production.

- Resulting in a 10-12 week lead time for Mill stock and a price increase by nearly 25%.

- Encouraging news; this appears to have reached its peak.

• Stainless Steel and Aluminum are both trending down and appear to be stable.

• Most equipment has improved (see enclosed), we continue to monitor equipment lead times in Q2.

• Equipment pricing has stabilized, however, demand remains high.

• It is recommended to release long lead items as early as possible.

Rich Mouradian VP / Business Development

Stephanie Wickman Estimating Coordinator

t. 781.953.0318 e. rmouradian@coxeng.com

t. 781.807.0427 e. swickman@coxeng.com WWW.COXENGINEERING.COM

| SELECT EQUIPMENT & MATERIAL LEAD TIMES (Lead times are based on approved submittal release.)

LEAD TIMES

TRENDS

AHUs Custom AHUs

15-36 weeks

Packaged AHUs

4-56 weeks

Modular Catalogue AHU

15-58 weeks

Make-Up Air Units

4-20 weeks

ERUs

4-30 weeks

FANS General Fans

4-25 weeks

Lab Fans

18-33 weeks

TERMINAL UNITS VAV Boxes

3-7 weeks

Fan Powered Boxes

3-8 weeks

Heat Pumps

8-16 weeks

Fan Coil Units

3-14 weeks

Computer Room A/C Units (CRAC)

12-50 weeks

Unit & Cabinet Heaters

4-6 weeks Delays Trending Up

Delays Trending Down

Remaining Stable

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| SELECT EQUIPMENT & MATERIAL LEAD TIMES (Lead times are based on approved submittal release.)

LEAD TIMES

TRENDS

HYDRONIC EQUIPMENT Air Cooled Chillers

10-50 weeks

Water Cooled Chillers

20-65 weeks

Modular Chillers

10-60 weeks

Cooling Towers

12-26 weeks

Stainless Steel Cooling Towers

18-32 weeks

Pumps

8-18 weeks

Large Split Case Pumps

22-26 weeks

Pump Specialties

8-18 weeks

Heat Exchangers

8-26 weeks

Boilers

2-12 weeks

Baseboard Fin Tube

10 weeks

REFRIGERANT EQUIPMENT Split A/C Systems

4-24 weeks

VRF Equipment

4-24 weeks

FUEL OIL Fuel Oil Tank

8-14 weeks

Fuel Oil Pumps

6-12 weeks Delays Trending Up

Delays Trending Down

Remaining Stable

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| SELECT EQUIPMENT & MATERIAL LEAD TIMES (Lead times are based on approved submittal release.)

LEAD TIMES

TRENDS

ADDITIONAL EQUIPMENT Control Dampers

4-13 weeks

Fire / Smoke Dampers

4-7 weeks

RGDs

3-5 weeks

HEPA Type RGDs

8-12 weeks

Sound Traps

3-10 weeks

Supply / Exhaust Lab Valves

6-8 weeks

VFDs

4-26 weeks

Chilled Beams

4-20 weeks

MATERIALS Galvanized Sheet Metal

10-12 weeks

304 Stainless Steel Sheet Metal

6-8 weeks

316 Stainless Steel Sheet Metal

6-8 weeks

Aluminum Sheet Metal

6-8 weeks Delays Trending Up

Delays Trending Down

Remaining Stable

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| SHEET METAL PRICING Galvanized Coil Stock is predicted to drop to near pre-covid values. Stainless and aluminum have decreased over the past few months to below $2.50/lb. (All prices below are dollar per pound.)

304 Stainless Steel Sheet Metal 316 Stainless Steel Sheet Metal Aluminum

$0.85

$2.25

$2.30

$1.95

$0.96

$2.95

$3.50

$3.15

$1.30

$4.00

$5.95

$5.80

$0.67

$2.20

$1.98

$1.80

Galvanized Sheet Metal

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| PIPE & TUBE PRICING While sheet metal pricing is on the decline, piping materials remain significantly higher than Pre-Covid levels. (All prices below are price per foot.)

1/2” Copper Tube Price Per Foot 6” Black Steel Price Per Foot

$3.30

$29.22

$2.69

$22.01

$2.81

$21.39

$2.62

$23.81

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| UNION LABOR FORCE CURRENT SUPPLEMENTAL UNION LABOR FORCE (Travelers)

< 100

Pipe Labor (Local 537) Anticipating a busy Spring

0

Sheet Metal Labor

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About Cox Engineering For more than 100 years, Cox Engineering has provided sheet metal and mechanical services including custom air-handling manufacturing (Cambridgeport Custom) and sheet metal accessory manufacturing (Cambridgeport Air Systems). At Cox Engineering, we do what we say; we’re on your side; we’re always getting even better. It’s why we are WHERE THE BEST ARE BUILT.

WHERE THE BEST ARE BUILT