Supply chain issues in the roofing industry will continue to challenge roofing companies in 2022. The pent-up demand from the COVID-19 pandemic, increased costs of raw materials, labor shortages, increased energy costs, and shortages in the roofing supply chain are creating the “perfect storm.”
Although the outlook for 2022 is more favorable than 12 months ago, many analysts are hesitant to predict that ongoing supply chain issues will significantly improve any time soon.
What does all of this mean for roofing companies in the US? Will supply chains improve as we move through 2022? This article aims to shed some light on the current state of the supply chain shortages for roofing materials.
Reasons for Roofing Supply Chain Issues
Roofing companies in Florida and across the country have experienced delays in getting materials. First, inventories were diminished due to the pandemic. Then, as the country got back on its feet, demand for roof repairs and replacements surged. Added to this are a unprecedented shortage of computer chips, soaring inflation, and rising costs.
The result is that roof contractors in Florida were swamped with work but found it challenging to get the roofing material they needed.
Roofing material price increases
In 2021, price increases significantly affected the cost of repairing or replacing a roof. We reported here that the price of construction materials in 2021 rose by 20.8% from 2020. However, the costs of other materials essential to the roofing industry also soared. This includes steel mill products, prepared asphalt, natural gas, and shingles.
Analysts predict that the price increases will continue through 2022. Official data from the Association of General Contractors (AGC) shows that the producer price index rose to 19.6% at the start of 2022. Statistics also reveal that inflation in the US had skyrocketed to 8.4% by March 2022.
Manufacturing delays affect the roofing supply chain
Although manufacturing is getting back to pre-pandemic levels, delays throughout the industry continue to create a roofing supply chain crisis.
For example, methylene diphenyl diisocyanate (MDI) is commonly used in roofing products. But a surge in global demand caused shortages, leading to longer lead times and price increases.
Another example is the demand for polyisocyanurate insulation, common in roofing. Demand for this product was at 200% compared to the previous year; however, availability was only 67%.
Labor shortages in the construction industry
Another factor causing issues in the roofing supply chain is shortages in the labor market. According to the Associated Builders and Contractors (ABC), the construction industry will face a shortage of skilled workers in 2022. It is estimated that the shortfall will be as much as 665,000 workers.
The Effects of Price Increases on Roofing Bids in 2022
Challenges in the construction industry are across the board, not just for roofing contractors. For example, because of constant hikes in prices throughout 2021, many manufacturers started holding prices for ten days or fewer — compared to the traditional 90 to 180 days pre-pandemic. Therefore, contractors need to plan ahead for projects to submit competitive bids on roofing projects.
Here are some examples of what happened in 2021 that affected the costs of roofing supplies:
- The AGC reported in October 2021 that the price of raw materials had shot up by nearly 20% across the board.
- In December 2021, reports showed that the cost of asphalt shingles had increased by another 10%.
- From 2018 until 2021, the price of asphalt products had jumped by around 33%.
Some contractors may help control their losses by adding a price change clause to roofing contracts. This could become standard practice until issues in the roofing supply chain disruptions get resolved.
How to Weather the Storm of Roofing Supply Chain Issues in 2022
Most analysts predict that time will correct most, if not all, supply chain issues. However, delays in shipping, increased costs, inflation, and longer waiting times all impact the availability of roofing materials and supplies.
At Code Engineered Systems, we care about our clients, and we aim to repair or replace roofs in the shortest time possible. However, we also want to manage your expectations for what to expect in 2022.
But does this mean that you should delay considering a roofing project? The short answer is no. Putting off a commercial or residential roofing project could severely impact your property. A damaged or leaky roof can cause issues with mold and dampness and lead to costlier repairs down the line.
Experts expect roofing supply chain issues to continue through 2022. So it’s in your best interest to get on a roofing contractor’s job list as soon as possible. This way, you’re first in line to get the essential repairs you need.
Here are some ways to get the best deal for your roof repair or replacement.
Manage your expectations
If you’re planning to have a roof installed or repaired, it’s best to be patient. Issues in the supply chain for roofing materials can occur unexpectedly and are out of the contractor’s control. Additionally, delays or increased costs could impact the final price or finish date.
Communicate with your roofing contractor
At Code Engineered Systems, we strive to provide all our customers with the best roofing service in Tampa. We also take a proactive approach to keeping our valued clients informed about any anticipated supply issue. Our aim is to provide realistic price forecasts and timelines from the start.
We also encourage our customers to contact us about concerns or anticipated delays to the roofing work.
It’s good to remember that supply chain issues aren’t impacting all roofing materials. Therefore, you could speak with us to see if there are alternatives. If you require emergency repairs, there may be suitable temporary solutions to repair a roof until a permanent fix is available.
Call Us Today
Roofing supply shortages throughout the construction industry resulted from many factors — a health pandemic, computer chip shortages, delays in logistics, and increased demand. Despite these challenges, Code Engineered Systems is committed to providing you with high-quality roof replacements or repairs in the Tampa Bay area.
If you need professional roofing, contact your local trusted contractor Code Engineered Systems for a free estimate. We are a leading provider of roofing services and have many loyal clients due to our competitive pricing and excellent work quality, despite roofing supply chain challenges.