The Ride continues…

by Larry Richardson

A short time ago, all the talk was how the Chinese market was pushing the prices of raw materials as well as fuel supplies. Then along comes Hurricane Katrina followed by sister Rita and wham! Things are looking more difficult than anyone could have imagined. Not only are we seeing price increases that I have not experienced in the 24 years that I have been in this industry, but availability of product is becoming a threatening issue.
As more and more manufactures are instituting allocation policies, some standard items may be in short supply or not available in a timely manner. At some point, the double devil of price and availability may force the cancellation of some construction projects.
The purchasing people at Yaun Company are trying to secure essential materials as best we can; however we wholesalers are all in the same boat. The temptation to hoard material will only make matters worse. Some advice may be to plan as early as possible and keep in mind alternative ways to complete the same job.
Industries that are issuing the most dire warnings are those involved with pvc or polyethylene. PVC pipe, fittings, electrical conduit, poly pipe, insulated electrical cable plastic culvert are planning shortages. Steel is taking another ride. The construction industry has been very strong in our trading areas and we hope that the push will continue. Please work closely with your Yaun company representative on any new or ongoing projects.