Covid effects on supply chain

[Shoyrtt]

25 Ships last Sunday at anchor in LA. Thats alot of construction screws and plywood!

We have our boat in a marina adjacent to the Port of LA/Long Beach and have noticed the cargo ships backed up. The rumor we heard was the wonderful California government in all of their wisdom modifying the CARB emission standards for big trucks has caused a shortage of vehicles available to unload all of the containers. For the big ships, it used to take 2-3 days to unload. With the shortage of trucks, it is taking 8-9 days to unload. The back up finally affected our marina this past weekend when the container ship "President Eisenhower" was side tied to a dock that has been vacant forever, blocking our views.

 

[bbwhitejr]

I have a dock neighbor that builds custom homes. Normally, $500k-2M. Three months ago, he was paying $4.99 for a sheet of 7/16 OSB-roof decking or wall sheathing. He is now paying $49.00/sheet. Went to the managers of HD and Lowes and made arrangements to build a semi-load from each store and store it in a pole barn.

Unbelievable....

Bennett

 

[b_arrington]

I have a dock neighbor that builds custom homes. Normally, $500k-2M. Three months ago, he was paying $4.99 for a sheet of 7/16 OSB-roof decking or wall sheathing. He is now paying $49.00/sheet. Went to the managers of HD and Lowes and made arrangements to build a semi-load from each store and store it in a pole barn.

Unbelievable....

Bennett

Contractors here are telling people not to do home renos or additions because materials costs are so high.

 

[Golfman25]

Contractors here are telling people not to do home renos or additions because materials costs are so high.

And that is what is supposed to happen. Demand is supposed to go down until prices moderate. I am not seeing that happen. It's insane.

 

[bbwhitejr]

And that is what is supposed to happen. Demand is supposed to go down until prices moderate. I am not seeing that happen. It's insane.

He has 8 going up right now and turning down more…

Bennett

 

[JHornsby3]

I have noticed inventory on some construction materials are low or none. I was in Home Depot yesterday and it has no construction screws of any size. All building materials have gone way up in price over the last year. No one will guarantee a quote for more than a few days, at best.

As a pole building dealer, I get dang near everything through HD. They are the largest lumber broker in the North American area. I have been told for months that they can't get and don't have any OSB sheathing. I walked in the store yesterday to pick up an order placed three months ago and there in the store is a stack of OSB 7 units high on the back stack and two and a half on the front. I walked out and called the pro services person and asked about the OSB, said I need two units for this one build. She said they can't get it and they wouldn't have any for several months. Sent her the photo of the stack and said I was just in the store. She hung up on me. Drove around the back and there was about 20 units stacked up along with CDX ply.

At Lowes a 2X6X12 is $54. A year ago it was less than $10 a stick.

If they give a bid, it's only good until that person leaves for the day. If they give a bid.

 

[El Capitan]

We’re such an instant expectation culture nowadays. We get breaking news as it happens, online purchases delivered next day.
Supply chains can’t shut and reopen quickly. Look at the chip shortage in the auto industry.

It’s not stimulus because non of this crap is made in USA.

It’s manufacturing, raw materials and transportation. It’s all backlogged. A 6 month interruption equates to 12-18 month delay.

I’m not buying shyte in this market. I’ll wait for the bubble pop.

23 states ending unemployment benefits some as early as June 6.

 

[Golfman25]

We’re such an instant expectation culture nowadays. We get breaking news as it happens, online purchases delivered next day.
Supply chains can’t shut and reopen quickly. Look at the chip shortage in the auto industry.

It’s not stimulus because non of this crap is made in USA.

It’s manufacturing, raw materials and transportation. It’s all backlogged. A 6 month interruption equates to 12-18 month delay.

I’m not buying shyte in this market. I’ll wait for the bubble pop.

23 states ending unemployment benefits some as early as June 6.

Yeah, it's a complete chit show out there right now. I just got a few order requests from UK and I'm like "what do you want me to do, we don't have the material either."

 

[Blueone]

. I walked in the store yesterday to pick up an order placed three months ago and there in the store is a stack of OSB 7 units high on the back stack and two and a half on the front. I walked out and called the pro services person and asked about the OSB, said I need two units for this one build. She said they can't get it and they wouldn't have any for several months. Sent her the photo of the stack and said I was just in the store. She hung up on me. Drove around the back and there was about 20 units stacked up along with CDX ply..

Are you saying the inflation is being manipulated and there isn’t a supply problem?

 

[Christo]

Right on El Capitan, some people don’t want to work, they make more money at home on unemployment (which is insane to me), hopefully when the extra money ends, people will get back to work and get supplies moving again

 

[JHornsby3]

Are you saying the inflation is being manipulated and there isn’t a supply problem?

No I'm saying both are the problem. As for lumber, the retailers that are the big box are raising prices as they see fit. And not being truthful to their loyal customers that spend a lot of money with them.

I have a friend who works for a trucking company. They go nation wide. But their bread and butter is taking raw materials to a plant and then hauling the finished product back to close where the raw comes from. They have been taking the raw but not returning with the finished. He said they are stock piling to a point that they are beyond capacity, just to get a higher price for their product. So yes that is a supply issue. They are holding the final customer hostage all in the name of profit. I can't wait for the customer to say enough is enough and they get caught with their pants down.

 

[OllieC]

I wish that were the case with the manufacturers we represent, stockpiling to raise prices. Their raw materials are backed up, which makes manufacturing backed up, which then the end user has to wait. Raw materials and resins, metal and the chip shortage is wrecking havoc with us.

It also doesn’t help the Government shoved a bunch of money into our industry with completion timelines. Now with the new infrastructure plan, the money proposed to be thrown in will be unprecedented. So now, all of my customers are purchasing everything at once. One of my products is over a year out, and we’re not guaranteeing that “year out” either. There’s also a major shortage of contractors to install those products if/and once they get them.

We’re so busy, we’ve come to a complete halt.

 

[JHornsby3]

I wish that was the case for us. After just two years as a sales company, we are being forced to close. Went from almost $300k a year in sales to, well, we have one sale this year for a $60k building kit. And the prices have gone up so much they might back out too.

Talking to a small time lumber broker here, they say the big guys are not being honest with their customer base. He told me that if I requested a materials bid with him, that price would be good for at least two weeks. That the industry prices are moving fast but not that fast that one can't put out that bid. Places like home depot and lowes not giving bids is stupid on their parts. He said their lumber sales have gone up by almost 200% because of the gouging at these larger stores.

Like going down to the fuel stop and seeing the truck delivering fuel at $X.XX price. Then tomorrow the price going up at that same location by 20 cents. Then again the next day by the same 20 cents. I don't mind the price increase that much. But when road diesel goes up over $1 in less than a few months, it really kind of hurts. From about $2.25 to over $3.80 in just 3 months is down right gouging by everybody.