To our Valued Customer, Present, Future, and Past,
Throughout the last 12 months, many of you have had to delay or postpone projects due to the pandemic and uncertainty surrounding us all. While this may have been a good decision at the time, we as a company feel it would be remiss of us not to share some current information with you all. There has been major supply chain disruption affecting logistics of both raw and finished materials worldwide due to the Suez Canal shipwreck and COVID-19 alike. Reduced production rates of building materials caused by the pandemic, tariffs, and unusually high demand for these goods has created quite the “Perfect Storm” of events to disproportionately create inflation in the construction industry.
The AGCA (Associated General Contractors of America) recently released a report showing the effect of these rising costs on the construction industry. Many feel that pricing to end-users will jump up to 30% in material costs alone in the coming weeks. We have noticed a large spike in pricing from sub-contractors and have received warning letters from suppliers that prices will be rising across the board by the middle of April. Many will not guarantee pricing for more than 10 days, where the previous pricing was honored for 30+ days.
You may be asking yourself, “Why does this affect me?” or “What can I do about this?” The short answer is that this affects us all. We want to share this information with you, our valued clients, who may want to move ahead with any projects or maintenance that has previously been put on hold. If not, you will likely be paying much more in the future.
The TEPCON Team