Why Material Costs Remain High

Demand for housing and renovations remains high, creating high demand for building materials, including copper, steel and PVC resin. This article from Boston.com cites the following:

  • Copper supply volatility, including tube and wire. “Seventy-seven percent of home builders the NAHB surveyed said they had encountered at least some shortage of copper wire.”
  • PVC resin and pipe remain in tight supply. “The construction industry supply chain has been sort of a terrible example of the butterfly effect in real life over the past year, where a winter storm in Texas can affect the price of PVC pipe in New York.’
  • Steel for appliances, pipe, and plumbing fixtures are seeing longer lead times as competition for rolled-steel intensifies amongst manufacturers. “Plumbing fixtures, we’ve seen upwards of sixteen weeks; appliances, we’ve seen as much as four or five months.”
  • The supply chain, in general, has been disrupted at all levels because of freight unavailability and rising costs. “Shipping ports have been overwhelmed by an increase in import demand, with container ships waiting days or even weeks to dock.”

See the following chart for specific overall increases:

How We Can Help

Merfish United’s business model – which enables wholesalers to buy a broad array of pipe products from one supplier, at low minimums for FFA – is designed for low and unpredictable volume scenarios, exactly like the one we are in right now. Call your representative now to schedule your next weekly delivery of mixed-and-matched pipe products.

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