Materials Shortage Q&A with Beacon

Building supplies are currently in high demand across various industries. These supplies include drywall insulation, appliances, furniture, lumber, shingles, vinyl windows, roofing products, and more. Due to a significant shortage of materials, planning a large-scale renovation of multi-family properties requires careful planning, budgeting, and communication between the client and the construction company. In light of the unprecedented demand and materials scarcity across the United States, Tom Purrazzo from IOC Construction interviews Jake Muszczynski and Joe Kemph, both leaders from Beacon, to discuss the issue. Beacon Building Products is one of the largest distributors of commercial and residential roofing products.

What is causing the high demand of various products across all verticals?

Methylene diphenyl isocyanate (MDI) is a chemical compound based on epoxy. It is primarily used to manufacture raw materials and commercial insulation products. However, due to the Texas freeze last winter, this chemical has become largely unavailable, causing a global supply chain issue. This is just one of the several factors contributing to the issue. “Losing that MDI product was a gigantic hit to us”, explains Joe. Many basic building supplies and everyday materials require MDI and it’s causing massive constraints within the industry. Lead times on products were once 10 days to 2 weeks and now could be 4-6 months.

“We’ve seen vinyl siding manufacturers that have had to suspend or delete colors because they can’t get titanium dioxide which is a component that goes into making sure the panel is strong and able to do color fade properly. Just the small components are really causing large issues for manufacturers”, says Joe. Vinyl windows are also in unprecedented demand because vinyl resin is hard to procure.

Why is there such a shortage of materials?

There is a high demand for chemicals used in manufacturing various products. Also, there is an increasing demand for single-family housing as people move from urban to suburban areas. Products manufactured outside the US face delays due to COVID-19 protocols. This is because shipments arrive on the West Coast and are later shipped to the Midwest. 

Many organizations have had to change their manufacturing processes. Factories have fewer staff on the floor to follow CDC guidelines for social distancing. This has led to delays in producing materials quickly, consistently, and effectively. Factory lines have been modified to accommodate social distancing and additional regulations. 

It is important to note that these delays could inconvenience consumers who are waiting to receive their products. However, they are necessary to ensure the safety of workers and consumers.

How long will this shortage last?

“It’s by product and it’s ever-changing”, Joe shares. The shortage of materials is likely to continue into 2022, but there are so many variables that it is hard to pinpoint exactly when this will end.

Jake explains, “it’s a lot of new issues that arose this year that we thought we would never face.” Lead times can really depend on the specific product, color, and manufacturer. Becon is focused on getting products in the 5 colors that make up over 80% of their business.

It’s best to begin a large-scale siding or roofing project with all material accounted for, vs getting started, having to stop and restart again due to materials shortage. At IOC Construction, we work with our vendor partners to commit to materials once the proposal is signed.

Will supply costs stay the same or increase?

Builders are experiencing high demand for their products, leading to a shortage of supplies. As a result, we can expect prices for these supplies to continue rising.

According to the National Roofing Contractor Association construction material prices are 23.1% higher than a year ago (as of August 2021). Tom advises that “planning ahead on capital expenditure projects is extremely important for any board or association since prices will continue to shift. We’re at the mercy of the market.” Financing may be a necessary component for HOA work in the next year. To get the most value out of your multi family renovation project is to buy today. Supply and demand is proving the pricing will continue to increase.

What type of communication can we expect from IOC Construction?

“At IOC Construction, we strive to communicate to all stakeholders even when there is no movement on a project,” says Tom P. “Beacon is a great partner of ours and is helping us deliver on every promise our team makes.”

On a typical multi-family project, our team will communicate with board members, property managers, clients, and homeowners on a frequent basis. Internally, our Business Development team communicates with estimating and production to ensure we’re all aligned on the project scope and timeline.

While lead times on materials are taking longer than usual, strong communication continues to be the key driver in a successful project with the IOC Construction Company. If your building is actively having an issue, it’s best to decide on your contractor and move forward ASAP. As an HOA board member, waiting until the next meeting causes additional delays in material and potentially a price increase on the material needed.

Request a bid to get started on your multifamily renovation. The IOC Construction Company specializes in painting, roofing, siding, maintenance, flooring, and more.