Shed Hub Reports Supply Chain Issues Crippling Nation’s Shed Manufacturers

WEST UNION, Ohio, May 18, 2021 /PRNewswire/ — Building materials are at an all-time high and the pricing trend continues to…

WEST UNION, Ohio, May 18, 2021 /PRNewswire/ — Building materials are at an all-time high and the pricing trend continues to rise at an alarming rate. Prices on commonly used building materials, like 2×4’s and OSB sheets, are among some of the products that have impacted builders across the nation. 

Dale Hall from the Ohio and Kentucky based shed builder Country Cabins, says they paid $7.73 for 7/16 OSB in February of 2020. In March of 2021, they paid $30.64. That is a staggering 296% increase. 2×4’s is a similar story. In May of 2020, the price tag on a 2x4x16 was $5.33. In March of 2021, it was $13.39, which is a 151% increase. 

Country Cabins has faced multiple price increases over the last year. According to Dale Hall, «We had to be very active at figuring out what it cost us to do business and then price our product accordingly. Finding building materials that were in stock, fairly priced, and with a reasonable delivery turnaround proved to be a difficult task. We had an all hands on deck approach, which involved more manpower in research, meetings, and business conversations. Furthermore, rolling out multiple price increases to our dealers proved to be a task in itself. We wanted to make sure our dealers implemented the new pricing but also assure them that we would get through this uncertain time.»

Builders are finding themselves in unprecedented times with high demand and low materials inventory available to them – not knowing when or where they will get their materials from. Meanwhile customers are creating huge demand for building materials with home improvement projects.

Hall explains, «If you keep your finished goods inventory high, you will have a lot of high-dollar inventory ready to go to dealers, but if the prices come back down, you just have overpriced inventory. This has forced us to navigate conservatively and strategically and anticipate when to pump the brakes in order to stay afloat.»

Jeff Huxmann, the founder of Shed Hub, a national marketplace for sheds, has noticed a change in how dealers are listing inventory. «We’ve seen more dealers start to list their inventory as ‘online only’. This means they are running low on lot model inventory and are listing their products virtually as a way to reduce the overhead of having expensive inventory sitting on their display lots. Dealers don’t necessarily need to have every single building in stock. They can post a variety of building styles on ShedHub and build them as orders come in. Customers can even purchase buildings listed on ShedHub directly from the ShedHub site.»

Huxmann expects lumber prices to stay high through the summer as wood products manufacturers scramble to keep up with demand.

Media Contact:

Heather Warren

415-915-7433

hello@shedhub.com

 

 

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SOURCE Shed Hub