to effectively manage the current climate within their businesses. From how to work unpredictable escalation costs into contracts, to relevant industry links and webinars, we believe contractor success is rooted in knowledge and preparation.
Eagle Roofing Products, Manny Oyola and Tyler Allwood
Eagle has experienced vendor delays on several fronts over the last year and a half. We saw delays in raw materials and machine parts, as well as component products that we resell. These delays have certainly caused difficulties. Our team has worked diligently to try to overcome these difficulties and supply customers in a timely fashion. Fortunately for the U.S. economy, the building industry has thrived during these difficult times, but increasing orders have exacerbated the pressures caused by delays. In addition to delays, the overall pressure on the economy caused by lack of labor, increasing freight costs and COVID-19 difficulties has continued to drive up prices. Raw materials and finished goods are more expensive than ever, causing us to have to raise our prices in some cases.
transportation costs to rise just as significantly as that of raw materials. We are continuing to work closely with our partners to ensure timely delivery of the products our customers depend on. In light of these issues, we’ve been working hard to proactively communicate with our customers and we are thankful for the long-term relationships we’ve built that have allowed us to navigate difficult times together. We believe that there is light at the end of the tunnel, but right now, our organization is taking the situation day by day. Our supply chain and technical teams remain dedicated to delivering our customers the products they trust as quickly and cost-effectively as possible.
Many Causes
You can see from these responses, why I value their insight. There is a consistent message here that the predicament we find ourselves in has many causes. Many feel that the origins go back to the tariffs placed on Chinese products in the middle of 2019 that unsettled the international supply chain. Then very early in 2020, the pandemic caused many manufacturing and shipping operations to shut down. Demand rapidly fell off, causing distributors to let their inventories cover the meager demand. When the economy would recover and to what degree was unknown, so new orders remained very modest. In early 2021, an unprecedented ice storm hit the heart ICP Building Solutions Group, of the domestic petrol-chemical industry in Texas and Riku Ylipelkonen Louisiana shutting down refineries and other producICP is committed tion. This happened just as the economy was starting to serving our to rebound. customers to the Demand for construction materials which had best of our ability remained strong through all of this, soon took off and and that’s someprices did the same. Demand for all roofing materials thing that guides was even stronger as pent up need for reroofing, as our everyday operations as we navigate the supply cri- well as new construction, continued. The gap between sis. Florida represents a very important market for our supply and demand grew larger, while shipping, which trusted roofing brands – including APOC, Polyset and was already struggling, became the latest bottleneck others – and our ability to get quality products into the both internationally and domestically. hands of our customers when they need them is our Which brings us back to our current dilemma: prictop priority. We’re working hard to make that happen. es are high and getting higher and lead times are often Facing raw materials supply shortages, we’ve had unknown. The important question is when will it get to take action. Having been challenged to acquire better? The pandemic is still causing problems with certain raw materials and taking into consideration the foreign manufacturing and shipping. A few positive skyrocketing cost of raw materials in general, we have COVID tests will shut down an entire plant or port. All had to explore alternative sources in some instances. types of shipping have been getting worse but hopeWhen this has been necessary, we have been workfully this problem is peaking and will soon improve. ing to ensure that our products maintain the level of Facilities along the Gulf Coast are coming back online integrity that our customers expect. This has involved after simultaneously dealing with recent hurricanes additional testing to ensure every product meets and tropical storms. Raw material shortages are still all relevant certifications and performance requireholding manufacturing down. Increasing prices are ments. While this may contribute to longer product beginning to slow demand, not something contractors lead times, we see this as an essential and necessary like but it will help to close the gap. Most owners are step to ensure technical integrity and product qualreluctant or unwilling to sign contracts that include ity. Logistical challenges have caused shipping and cost escalators and, with such price volatility, it will be Continued on page 35 www.floridaroof.com | FLORIDA ROOFING
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