Due to projected futures costs for our core commodities, we may be forced to increase our prices as much as 15% to offset these costs throughout all of our global facilities.
JANESVILLE, Wis. (PRWEB) April 09, 2021
Since September 2020, commodities used within the construction industry have skyrocketed in price. Steel, aluminum, gypsum/dry wall, lumber, and glass have faced cost increases up to 200%. According to the London Metals Exchange, 12-month flat steel futures (steel used for appliances and automobiles for example) have increased more than 70% since October 2020 and aluminum billet has increased nearly 40% over the same period. Gypsum prices have climbed sharply and are expected to increase another 10% by end of Q1, 2021, as residential construction remains strong.
As our economy recovers from the effects of the pandemic, these commodity prices are affecting manufacturers and distributors of construction products. Janesville, Wisconsin-based Hufcor, Inc., a leading global supplier of operable partitions that provide flexible space for hotels, schools, and many commercial projects is no exception.
“Our moveable partitions are made primarily from steel and aluminum. The pandemic has delayed many projects, including those that were sold pre-pandemic are starting up again with drastically different cost structures,” says Clint Morgan, Hufcor’s Chief Operating Officer. “Due to projected futures costs for our core commodities, we may be forced to increase our prices as much as 15% to offset these costs throughout all of our global facilities.”
Hufcor Inc. is not alone as they may be one of many subcontractors on a construction project. General contractors and construction managers are also feeling the pinch as many suppliers have been forced to increase prices over the past few months. Projects that were budgeted in 2019 or 2020 are costing more now that developers are releasing projects. According to the U.S. Bureau of Labor Statistics and the Producer Price Index (PPI), overall construction costs have risen 10% year-over-year compared to February 2020 and overall project costs are starting to climb as a result.
Higher costs, supply chain disruptions and increasing fuel charges are all factors facing the commercial construction industry moving into 2021. As 2020 taught us, solid planning, patience, and perseverance is key to ramping up during the post-COVID economic recovery. We will be working diligently to manage through this time as we are all excited to see a market recovery within the building & construction industry.
At Hufcor, we exist to shape the experience that people have within a built environment – we are in the business of space management. Offering the widest range of glass, operable, vertical lift and accordion partitions, our products shape space by providing flexible sight and sound separation and enable our customers to control the atmosphere and experience of their space. Committed to advancing what is possible in space management, we are consultants that have more, do more, and deliver more for our customers. Every day we work with architects, contractors, and building owners across markets to help them maximize the utilization of their space to realize what is possible. We shape our customer’s experience through the breadth and quality of our expertise, capabilities, and products along with our inherent drive to solve problems. This uniquely positions Hufcor to reliably deliver exactly what is needed. To learn more about Hufcor, please visit Hufcor.com.