How is Spannenberg and Son dealing with both high demand and shortage of materials?Remember only...

How is Spannenberg and Son dealing with both high demand and shortage of materials?

Remember only recently when such a large swathe of our state forests burnt down?

Worldwide timber shortage - Market Update - April 2021

The housing market continues to grow with record housing construction demand reported. With regard to certain timber supply, lead times are extending out and costs are heading north. We have read several reports pointing toward a suggested catalysts which include international demand, international freight/shipping costs and our local stimulus. Commentary from our suppliers is that some of their initial estimates around price increases will be greater than they first anticipated. This appears to be due to the impacts of a global market, coupled with other world economies, essentially “bidding” for the same materials we require in Australia. This will potentially continue to put demand on supply and inevitably continued price pressure.

Lead times from suppliers are extending beyond traditional timeframes, floor systems are running at 6-7 weeks from order. This is being factored into delivery dates and orders being placed to minimise any potential delays.

Several materials are also becoming scarce and could present supply issues. These are likely to be;

• ​ 17c Engineered beams – generally used for lintels and beams where the opening is large.

• ​ GL Primed Beams – generally used as exposed beams.

• ​ 70mm Structural Timber (70mm walls)

• ​Floor Systems (I-joists & LVL)

Increases to material costs we are aware of to date include;

• ​Structural Pine - Increase of 15%

• ​Floor Systems – Increase of 15-25%

• ​Engineered Wood Product (EWP) – Increase of 15- 25%

• ​Metal Fixings – Increase of 8%

Timing on these increases continue to range and we have price increase notifications up until July 1st, 2021. Any price rises beyond July are currently unknown.

Unfortunately, due to these cost movements we are likely to see an increase in the supply of frames, trusses and floor systems in the vicinity of 12%.

Spannenberg and Son have solutions in place to meet demand and control costs!

1/We have recently stocked up on timber including slings of timber imported from Germany, we are recycling where we can and using Australian steel from local suppliers as an alternative to timber where we can.

2/We have been gearing up for this demand and have the experience, systems and processes in place, we have employed extra staff and have arrangements with our trades and suppliers who have worked with us over many years and are up to the task.

3/Many Builders in a high demand environment may be burning the candles at both ends, taking on a workload they cannot cope with or employing staff not up to the task.

4/Spannenberg and Son only employs qualified and experienced trades and staff so that we can deliver quality and service very time.