We just got a notice dated May 9, 2016 from one of our main roofing suppliers ABC Supply, who said their prices will be going up on June 15th According to them all of the major roofing manufacturers have announced a price increase effective May 31, 2016. They are also reduced or eliminated all incentive buys for distributors that had been keeping the prices from rising over the past few years. This increase is not driven by oil or asphalt as it has been in the past. But these 4 reasons:
- The economy and unemployment are back to pre-2008 levels
- Organic demand for shingles has risen steadily at 2-3% and last year as approx. 113 million squares of shingles even with very little storm activity.
- So far this spring , we have had unprecedented amounts of hail and rain pummeling the Southwest and California.
- The upper Midwest, Washington DC and the Carolina’s have had damaging hail and winds. As a result, shipments from manufacturers have extended lead times of over 60 days from time of order.
What does this mean for us? 5-10% general increase on all shingles and related accessories will change our estimates greatly. Now I checked with our local supplier and the price increase isn’t imminent but we are both assuming by the end of summer we will see an increase. For us we need to adjust our way of doing estimates. We will have to put expiration dates on our quotes. And add in a line about material cost increasing from the time of quote to time of project. We will need to keep this in mind in the future. And an educated consumer is our best customer.