Wisconsin Building Supply News & Marketplace

November Market Update

2013-12-19T09:02:00.001-06:00

It's the holiday season, a time that reminds us to reflect gratefully on the past year and look forward to what's in store for 2014. We'd like to express our sincerest gratitude to our customers as we reflect on 2013. Rebounding from the recession has been a slow process only made possible by the perseverance of builders and their confidence in the industry. All of us at WBS thank you for your business and loyalty throughout this time. As we look forward, projections verify there are good times to come. Read below for current building industry conditions and forecasts for upcoming months.

Cost of Framing Materials

Framing material costs in the month of November are keeping confidence levels up as we head further into the winter months. Prices experienced a slight lift, up 2.11% from last month, and were 2.23% higher than November 2012. Costs of framing materials are closely matching what was projected-slow, continuous growth through the remainder of 2013. Experiencing growth during the winter months, a time normally vulnerable to seasonal lull, is encouraging to both builders and suppliers.

Overseas Exports Surge in 2013

In the third quarter, U.S. exports of softwood lumber hit their highest quarterly total since 1997 with volumes up 22% from 2012 according to Random Lengths. Canadian offshore exports increased dramatically to 1.48 billion board feet in the third quarter, up 28% from one year ago. A major portion of the surge in U.S. exports can be attributed to China showing a 68% increase. Other Asian destinations were active, including a 19% increase to the Philippines, but traders are unsure exactly how much the recent typhoon will influence the demand in the country. Meanwhile, U.S. imports from offshore suppliers continued to rise, but at a slower pace when compared the first half of the year. Overall imports from offshore gained 47% compared to last year.

Design Trend: Big Garage, Small Presence

Americans' demand for more space and storage is creating a challenge for residential home designers. Many homebuyers want or require a three-car garage, but not at the expense of their curb appeal. Builders have accepted the challenge and are creating custom designs that allow plenty of room for storage, but showcase the true qualities
of a home. In some floor plans you can't even spot the garage from the front of the
home at all. Read more and see example illustrations of these innovative design solutions on BuilderOnline.com.

October Market Update

2013-11-19T09:20:00.000-06:00

Mild weather and smooth, steady supply distribution have lead to a conventional conclusion of October. A late surge in activity drove prices up only slightly. After a quiet autumn season, traders and buyers alike are looking towards winter with optimism as we now rebound further from the recession and move at a manageable pace. Work with your WBS salesperson to ensure you're equipped with everything you need as you prepare for winter projects.

Cost of Framing Materials Lift, Remain Steady

Costs of framing materials were up slightly in October showing a 2.14% increase from the minor dip we saw last month. Prices are a narrow 3.09% above last year's costs, but are much higher than 2011. This further indicates that last year's price differential was likely the most drastic to occur throughout the housing recovery, with more steady and gradual increases to follow.

Southern Pine Fir Supply Shows Uncertainty

Canada's aggressive SPF harvest program in the wake of the Mountain Pine Beetle devastation has lumber traders bracing themselves for a ripple effect. We're uncertain exactly how it will affect the market, but developments already occurring include the closing of two Western Canadian sawmills, Canfor and West Fraser. As a result, heavy speculative buying has driven prices up and orders out to November in mills across the U.S. and Canada, according to Random Lengths. The impact may not be as significant as many would assume, though. Traders have been prepared, knowing production adjustments were coming due to limited harvest after the beetle kill. Companies across the U.S. and Canada are considering increased production to offset the loss as they were already making plans to increase capacity in North America overall to meet rising demand after the recession.

Mass Timber Makes Gains in the U.S.

The use of mass timber for the creation of large-scale buildings is already widely accepted in Canada and Europe. Now, it's slowly gaining credibility as a cost-effective, sustainable and practical alternative to traditional methods of using concrete and steel. The benefits of switching to mass timber have gained credibility thanks to a recently issued report by a leading U.S. architectural firm in Chicago that has developed a system to construct a 42-story tower primarily using mass timber. Critics of mass framing timber focus on the risk of fire or panel shrinkage over time, but supporters claim sprinkler systems and advanced engineering temper those concerns.

Embracing Universal Design

A myth exists that if a homeowner chooses a universal design for a room layout then they must sacrifice appearance. As reported by JLC Online, universal design is trending, specifically in bathrooms. The concept of universal design aims to help contractors and designers turn rooms into safe, well-planned living spaces. Bathrooms can be hazardous areas with wet, slippery, small spaces with hard surfaces and edges, making them the ideal rooms for universal design elements such as railings, benches, easy-access showers and more. See how some leading design experts are taking universal layouts and outfitting them with a modern and original design.

September Market Update

2013-10-07T10:34:00.000-05:00

As we conclude what has been quite an eventful summer, we look forward to discovering what fall has in store. As you'll read below, prices have leveled off from the steady increase we've seen consistently through 2013, making the coming months less predictable. Please continue to check in with your WBS Sales Team to ensure you're equipped and prepared for all your fall projects.

Costs Change with the Seasons

After experiencing a steady momentum of growth in housing this year, we're seeing activity begin to slow down in September. Although pricing pressure in framing materials has eased somewhat and is slightly down from last year at this time, building materials have taken the opportunity to pass through price increases that they have been holding off on for some time. Please consult with your WBS salesperson to better understand what impact, if any, this may have on your projects. These prices are also consistent with the usual deceleration of activity as we transition from Summer - the height of the building season. Aside from seasonal impact, mortgage rates have increased and could be a contributing factor to slower demand.

Builders Prepare, Strategize for New Impending Code

The 2012 International Residential Code has been adopted by five states already and is expected to gain more ground, particularly in the Northeast and Midwest. This new regulation places increased demand on I-joists over unfinished basements, requiring ½ inch gypsum board or the equivalent fire protection to be applied to ceilings and above crawl spaces used for storage or contain fuel-fired appliances. The new code has builders across the U.S. strategizing for the most cost-effective solutions, and many also are projecting how this change will affect the demand and pricing for I-joists in the future. I-joist producers are suggesting a solution to apply a half inch of drywall to ceilings to bring them up to code, while others suggest selecting sawn 2x10s to avoid the need for sprinklers and sheetrock. Forest Economic Advisors are projecting the code will give 2x10s a competitive advantage over I-joists by 2017, when the code is expected to be in effect for an estimated 60% of the nation.

Rate, Economy, Weather - And China - All Make Their Mark

This year marked the highest level of builder confidence (58%) in eight years, but shifts in housing trends through September are leaving traders with lists of uncertainties as they head into the fourth quarter. Analysts report recent gains in mortgage rates as a key factor impacting the industry's growth and they will be watched closely through the fourth quarter. Additionally, the economy as a whole continues to be hindered by slow job growth. Weather has made a great impact on lumber trade this year, particularly in the South, which has experienced a soaked summer. Traders are hoping for a dry fall to rectify the shortage. Lastly, exports to China jumped after a second quarter slump in softwood lumber. We'll be watching off-shore demand closely, as it impacts the Western lumber supply for the U.S.

February Market Update

2013-02-28T09:03:00.000-06:00

Greetings from the great white north! Despite the fact we live in Wisconsin it has been a bit of a shock to the system that we are having more of a traditional winter season. In some parts of the state there is little snow on the ground and in others there is snow and frost 2+ feet into the ground. The extra snow will be good for the fields and lakes once it melts but it makes our work a little tougher.

The big question we hear from our customers is how high will this commodity market go? Without a doubt this is one of the more vexing issues we face as we head into our building season. These bull market conditions are unlike anything we've seen at this time of year. Since the housing slowdown 148 mills have been closed or shuttered and this has reduced capacity for production. A typical mill will produce about 150 million board feet per year. In 2006, 3% of Canadian lumber production was exported to Asian countries. The Asian market is now drawing almost 40% of the production out of the system and their demand is not expected to lessen. Consequently, we have three things that are impacting pricing: an uptick in domestic demand, reduced capacity at the mills and a much larger export market. The last challenge we face is there is little product in the pipeline at the wholesale level which exposes all of us to increased volatility.

How can we best work together on this? Communication. Please communicate with your sales person on your projects and when you expect them to ship. This gives us the opportunity to work with our purchasing team to try and protect the pricing for the project. Please communicate with your customers that it is very difficult to hold prices beyond 30 days. Many of our customers are telling us they now have a 30 day quote policy with the homeowner.

Cost of Framing Materials Continues to Climb

The numbers are in and the demand for building materials in February proves that 2013 will be an interesting year for the housing industry. Cost of framing materials in February is 3.65% higher when compared to January and is 32.77% higher than last year. Pricing for framing materials has not been at this level since 2006.

Reduced Design Values for Southern Pine by June 2013

After reports of surprising weaknesses in 2x4 lumber, a series of tests within sawmills in Southern Pine growing regions were conducted to reassess the lumber's value. The American Lumber Standards Committee (ALSC) has voted to issue new design values for Southern Pine, including all sizes and grades of dimensional lumber. Design values for #2 2x4 Southern Pine were already reduced last year as a result of preliminary testing. Now, 2x8 and 2x10 lumber has been tested as well, including #1, #2, and Select Structural grades. The results found values were significantly lower for the modulus of elasticity (MOE) and modulus of rupture of the lumber. The change will incite an adjustment period for decking, flooring and framing professionals--especially truss makers who will need to redesign the manufacture of their products by June 2013.

The good news is that we are well aware of these changes and have already taken the steps to be prepared. Our truss manufacturing facility has already reviewed all the software design values and will be incorporating these changes well ahead of the June timeline. You can expect a seamless transition to the new specifications.

Strong Sales in 2013 Negate Lumber's Winter Weather Troubles

Harsh winter weather has lead to reports of slowed production and consumption of various lumber products across the nation. Northern markets were overwhelmed by winter storms, but demand remained steady due to new sales orders extending into March. The south battled bouts of rain, causing limited availability for large logs, thus driving up prices of all #2 widths.

January Market Update

2013-01-31T08:12:00.000-06:00

Happy New Year! Just like last year the winter of 2012/13 is shaping up to be unusual for a variety of reasons. Last winter we benefited from an unusually mild winter and we were all able to be in the field on a more consistent basis and our customers did not feel the need to delay projects due to poor weather. This year we are already into mid-January and our weather has again been milder than expected. However, what has changed from last year, is the commodity market and the vendor market as it relates to pricing increases. Last year the markets were flat and predictable to the time of the year. This year many vendors in the building materials categories have announced or are expected to announce price increases for the year and many are saying there are more on the way. In addition, the commodity market, as you will see below is at levels higher then we have seen since 2004. Some people believe this is the floor for the year and prices will continue to increase. Other people are saying this is unsustainable and that the market will have a correction and a fall back as part of a healthy market. Speculators have begun to place money in the market and exports are stronger than ever. This means that we will see volatility returning to the market in ways we have not seen in many years. Many suppliers and wholesalers do not carry the inventory they once did and therefore we all feel the swings of the market more acutely than we did in the past. Please keep an open line of communication with your salesperson and let them know when projects are expected to start so we may work with you more effectively to ensure a profitable project for all of us.

Cost of Framing Materials Continues to Climb

With January now behind us, the new year is officially underway and reports prove the slow and steady growth of building material prices continues into 2013. Demand for materials has increased framing material costs 3.21% when compared to December of last year and 30.71% when compared to this same time last year. This serves as a great example of the changes that the building industry has experienced in the last year alone.

Remodeling on the Rise

Reports of last year's activity prove that home remodeling is slowly and steadily making an upward turn. Through November 2012, improvement expenses on new residential structures averaged a seasonal adjusted rate of $123 billion, up from $114 billion in 2011, according to the Random Lengths Reports. The Harvard Joint Center for Housing Studies forecasts the improvements to continue, predicting a double-digit percentage on improvement spending in the first half of 2013. Industry experts attribute the remodeling trend to a high percentage of distressed home sales and buyers choosing the more economical decision to fix up a home rather than buy or build a new one.

Sandy Relief Efforts Impact Supply

In the wake of Superstorm Sandy, the building industry has been met with both opportunities and challenges to meet demands for products on the east coast. Timber prices have increased substantially, and distribution is struggling to keep up. Demand for Southern Pine 2x4s and 4x4s has increased to repair fences, boardwalks, piers and docks in the northeast. In the west, high demand for small timbers, such as 2x4, have put pricing gains at their peak since 2005. An unusual spike in orders throughout the west in combination with hurricane relief efforts, have mills adjusting production plans to accommodate the high-volume orders in a time when supplies have been limited.

WBS Announces Promotions and Changes to Staff

2013-01-11T12:33:00.002-06:00

Dan LaCombe has been promoted to manager of the Green Bay Yard. Dan started with WBS in the stock lumber department in June 1990. After several years in a supervisory position, Dan has gained knowledge in the operation, market, and customer base of WBS, which will be a great advantage as he takes on his new role.

Terry Smith has accepted the position of senior lean operations manager for USLBM, the parent company to WBS. We thank Terry for his hard work at WBS and wish him luck in his new position.

If you have any questions or concerns about how changes to our staff will impact your customer experience, please contact your WBS sales representative.

NEWS: Atlas Roofing Announces Price Increase

2012-12-11T13:19:00.001-06:00

Atlas roofing has announced a 10% to 14% price increase on all shingle and underlayment products effective February 4, 2013. All shipments on or after February 4 will be invoiced at the new rate regardless of order entry date.

WBS will continue to monitor Atlas Roofing costs, and adjust prices accordingly. Please contact your local WBS Salesperson with any additional questions.

NEWS: GAF Announces Price Increase

2012-12-10T11:38:00.000-06:00

Due to increased manufacturing costs, GAF has announced a 10% price increase on strip shingles and accessories, and a 12% price increase on all laminate shingles effective February 4, 2013. All shipments on February 4th and beyond will be invoiced at the increased rate, regardless of order entry date. As February approaches, GAF will communicate specific price increases by product.

WBS will continue to monitor GAF costs, and adjust prices accordingly. Please contact your local WBS Sales Manager with any additional questions.

NEWS: Sheetrock Prices to Increase by the New Year

2012-12-10T11:35:00.000-06:00

Wisconsin Building Supply was just informed there will be a 12% price increase on sheetrock for any orders placed after January 1, 2013. We will continue to monitor costs, and adjust prices accordingly. Please contact your local WBS Sales Manager with any additional questions.

November Market Update

2012-12-07T09:14:00.000-06:00

The good news is the election is over and it’s safe to watch television and listen to the radio again. In our state it seems like we have moved from the 2010 mid-term elections to the recall election and then to the 2012 elections. Like most people, we are tired of politics and would prefer to think about business instead. As you will read later on in this newsletter, markets are staying strong into the winter months. This is because demand has stayed strong due to good weather, plus Hurricane Sandy has had an impact. It will be interesting to see if this continues through the winter. Please be aware, we are being told that many manufacturers are planning price increases for the first of the year. They typically announce the exact date and the amount of the increase 30 days prior to its implementation. Please consult with your salesperson regarding any impact this may have on your proposals and projects going forward.

Housing After the Election

Obama’s re-election not only means a continuation of plans that have already been set in motion but the implementation of new initiatives as well. According to Builder Online, the following are major priorities projected for housing in the Obama Administration: making refinancing easy, reducing high-risk loans with mortgage regulations, and determining the fate of principal reductions and mortgage interest deductions. Read the article for more details.

Cost of Framing Bounces Back

Prices of building materials experienced a minor dip in October but have already rebounded in November. Framing costs are 2.97% higher than the previous month and a significant 25% higher when compared to November 2011. This is the largest demand we’ve seen all year, with the exception of September, which showed a 27% increase in prices when compared to 2011. This further verifies the continued and overall upward trend in demand for building materials this year.

Industry Bears Growing Pains

Areas of the country where the market is starting to improve have already reported the aches of labor shortages, according to Builder Online. Homebuilders are struggling to find specialists and skilled trades contractors who have left the industry during the recession. While the impact is still uncertain, many homebuilders have reported an increase in the amount of time it takes to complete projects. Labor shortages started in the West and have spread cross-country to larger metropolitan areas but don’t seem to be a prevalent problem currently in the Northeast or Midwest.

October Market Update

2012-11-02T09:50:00.000-05:00

As we get further into fall we see in the news how weather can have a profound impact on our business. Local weather such as our mild winter, early spring and long summer have contributed to a bounce-back year for our industry. More distant weather can also have an impact on our business. We will learn in the next few weeks the projected impact of Hurricane Sandy on the supply chains and what this will mean for us over the coming months. Please remember that demand is already increasing in our industry and manufacturers have been slow to increase production in order to better balance supply and demand. If there should be a spike in demand from Hurricane Sandy this will impact prices as inventory levels have been kept low at the wholesale level and there is naturally lower inventory as we head into the winter months. Please work with your sales team to better understand how this may affect your projects moving forward. We will update you as more information becomes available.

Cost of Framing Continues Upward Trend

The demand for housing materials is improving. The rate of increases in framing materials has slowed to 5.4% over last month, but rates are still up 21% when compared to last year. Industry experts predict this slow and steady upward trend to continue throughout the fall season and into 2013.

OSB Demand Makes Surprising Turn

Although OSB prices are nowhere near the record-breaking highs of 2003-2005, there has been a surprising increase in OSB price this month. Industry professionals attribute the price inflation to demand exceeding supply. Some speculate that manufacturers have been reluctant to increase production because of the unpredictable nature of the recovering economy.

Annual U.S. Housing Characteristics Released

The U.S. Census Bureau released its annual report on new housing built in 2011. Here are some of the highlights featured in Random Lengths:
The average single-family house completed was 2,480 square feet compared to the average of 2,392 square feet in 2010. The average square footage of multi-family units built was 1,408.
39% of single-family homes had four or more bedrooms, 48% had three bedrooms and 19% of single-family homes sold had a three-car or larger size garage.
The average sale price of a new single-family home was $267,900 compared to $272,900 in 2010, $270,900 in 2009 and $292,600 in 2008.
The average price per square foot for new single-family homes sold was $83.38. Regionally prices were: $111.37 in the Northeast, $96.12 in the West, $87.53 in the Midwest, and $76.73 in the South.
62% of all new single-family homes sold were financed by conventional loans compared to 58% in 2010 and 62% in 2009. Loans financed by FHA-insured were 20% in 2011, 25% in 2010, and 24% in 2009.
The average lot sizes were 16,663 square feet for all new single-family homes, 15,616 square feet for new homes in metropolitan areas, and 28,768 square feet for homes out of metro areas.

August Market Update

2012-09-05T08:35:00.000-05:00

It's hard to believe we are nearing the end of summer. We have survived the heat wave of 2012 and everyone is now gearing up for back-to-school and football season. As you would expect, we saw a decline in roofing activity during the hot summer months but it's now rebounding nicely as people are able to get back out on the job site. Despite the challenges facing the economy, and even the uncertainty surrounding the fall elections, we continue to see consumers coming off the sidelines and getting into the game. Both new construction and remodeling have strengthened as people choose to start spending money on their homes again. We are optimistic that this trend will continue for the remainder of the year. Commodity prices continue to put pressure on all levels of the market and many building product manufacturers have raised prices multiple times this year. Please work closely with your WBS representative to ensure your quotes are accurately reflecting the rapidly changing market.

Lumber & Panel Prices Reflect Industry Improvements
At the close of August, framing material prices have increased again. After a slight dip in July, costs have increased 4.5% when compared to last month. August costs are averaging approximately 17.6% over the same time in 2011. This further confirms the overall upward trend shown throughout all of 2012. Since May of this year, framing materials have consistently been 13-20% higher than the costs in the comparable months of 2011. Cost increases can be attributed to a slow but steady recovery occurring within the building industry this summer along with diminished supply.

Building Permits Increasing, as Well as Projections
According to BuilderOnline.com, the latest report on new housing starts and permits was released from the U.S. Department of Commerce showing permits were up 6.8% in July, the best the industry has seen since August of 2008. Single-family permits have increased 4.5% and multifamily permits have reached an encouraging 11.2% increase. This surge is expected to continue throughout 2012 and even into 2013 according to a combined analysis from five contributing industry experts representing the National Association of Home Builders, Mortgage Bankers Association, National Association of Realtors, The Engineered Wood Association and Forest Economic Advisors. As detailed in Random Lengths Report, the analysts raised forecasts for new-home construction in 2012 by 12.3% due to faster-than-expected growth throughout the first half of the year. Projections continue to be ambitious through the remainder of 2012, despite seasonal slowing in the 4th quarter, a struggling economy, and the upcoming presidential election.

Job Report: Surprising Shortage in Construction
Despite the troublesome fact that unemployment continues to linger around 8% nationwide, there are still scattered job shortages throughout the construction industry. Major needs are being identified in framing and other skilled trades, with shortages also reported in trucking and within mills. Many attribute the lack of skilled workers to the recession (workers returning to school or seeking other more stable professions), tougher laws on illegal immigrants, and workers' inability to pass drug tests. When considering the industry's upcoming revival, a veteran trader interviewed by Random Lengths Report said, "When this market really accelerates - I think within the next year - look out. Not enough loggers, not enough log truck drivers, not enough mill workers, not enough long-haul truckers, and now not enough construction workers. I think we're in for a wild trip." Stay tuned.

Wisconsin Building Supply June Market Update

2012-06-29T09:27:00.000-05:00

The cost of materials continues to grow as a portion of home construction costs when compared to years prior. You will see some additional information on this later in the newsletter. Though we are nowhere near historic highs, prices are still an incredible value when compared to the past. We are posting any notifications of announced price increases on our blog and you can verify what impact these increases may have on your business with your sales person.

Cost of Housing Still Making Great Strides

The month of June has seen the largest increase yet in cost of housing for a typical two-story home this year when compared to 2011. Cost of housing now is 20% higher than this time last year, surpassing last month’s shocking leap from a 1% (April) to 13% (May) increase when compared to last year. The continuation of such significant growth further validates signs that both the economy and housing market are improving.

Campaign for Home Ownership on Capitol Hill

In recognition of National Home Ownership month, the National Association of Home Builders (NAHB) called on congress to make home ownership a national priority. More than 700 home builders gathered on Capitol Hill on June 6, 2012, in an effort to improve the job market, national economy, and housing market.

According to the NAHB Chairman Barry Rutenberg, “Persistently tight lending standards for home builders and buyers, uncertainty regarding the future of the housing finance system, ongoing threats to vital housing tax incentives, and overly burdensome regulations are hampering a housing recovery and keeping countless home building firms from constructing viable projects and hiring new workers.”

Builders met with senators and representatives to support legislation in favor of the following initiatives:

• Restore the flow of credit for new housing production with the Home Construction Lending Regulatory Improvement Act. The bill would reduce barriers for lending while also preserving regulators and financial institutions.

• Reform housing government sponsored enterprises Fannie Mae, Freddie Mac and the Federal Home Loan Banks to provide a federal backstop and ensure a reliable and adequate flow of affordable housing credit in all economic and financial conditions. 

• Preserve current housing tax incentives such as the mortgage interest deduction and Low Income Housing Tax Credit. 

• Improve the Environmental Protection Agency’s (EPA) Lead: Repair, Renovation and Painting rule (LRRP) by reinstating the opt-out provision, allowing home owners without children to decide whether to comply with LRRP. 

• Reduce the overreach of federal power under the Clean Water Act. The Preserve the Waters of the United States Act would prevent the EPA and U.S. Army Corps of Engineers from expanding the Clean Water Act to include virtually every ditch, pond and seasonal runoff ditch in the nation.

Wisconsin Building Supply May Market Update

2012-05-29T11:26:00.000-05:00

Spring is here and the rain has arrived with it. After a wet and muddy start to the month, business continues to strengthen. We appreciate all of our customers and want to keep them informed of what is happening in our industry. As you may be aware, many manufacturers have been raising prices within the building material category. This is different from the price increases we have seen in the commodity markets. As such, we will share any of the price increases announced by our major suppliers. Since the first of the year we have seen price increases from CertainTeed Roofing and Siding, GAF Roofing, Atlas Roofing, Guardian Insulation, and most recently, James Hardie Siding. Please discuss any impact this may have on your projects with your sales person. We will add any new announcements to our blog section on our website as they occur. As always, thank you for your business.

Increased Buying Builds Confidence

Housing starts and permits in the Midwest have shown growth through the month of May according to Random Lengths reports. This upward trend is confirmed with other incoming reports of market improvement. According the National Association of Home Builders (NAHB) Housing Market Index (HMI) scale, newly built single-family homes gained five points in May from a downwardly revised reading in the previous month. Barry Rutenberg, chairman of the NAHB, says that builders in many markets are reporting sales traffic has picked up after a lull in April. “It seems we have resumed the gradual upward trend in the confidence that started at the beginning of this year, as stabilizing prices and excellent affordability encourage more people to pursue a new-home purchase.” While Rutenberg admits there is still much room for growth, the fact that the HMI has returned to an upward trend is a good sign of what’s to come. Read more.

Mill Fire Leads to Lumber Surge

Random Lengths Lumber Market reports show that Southern Pine Composite is still making steady progress, posting its fifth straight weekly increase. Though results are mixed (increases are less in the Eastern portions of the U.S.), central regions remain strong. A major contributor to this increase is a major mill fire that has constrained western supply and, as a result, has boosted both pricing and demand. Westside mills are increasing quotes to reflect the largest gain since November 2008 and its highest price level since May 2007.

Cost of Housing Rise Continues

Cost of housing for a typical two-story home has shown the largest increase of any month this year. The market experienced a dip in April, down 1.05% from a very promising month of March, which had increased 3.27% from the month prior. May has bounced back with a 6.21% increase compared to April. This steady growth is also confirmed when comparing last year’s prices. In the first quarter of 2012 prices have hovered approximately around a +/-1% increase each month, but have experienced a significant 13.09% increase from May 2011 to May 2012. These increases can most likely be attributed to augmented prices within the stud market, along with normal seasonal changes.

Kitchen Remodel Opens Up Home for Spacious Living

2012-05-09T15:11:00.000-05:00

Wisconsin Building Supply Designer Karin Petrusky, along with contractors from Home Craftsman, worked with homeowners Sue and Mark Smiley to completely transform their kitchen and dining space for a more spacious living area. Knocking out two walls, created room for two kitchen islands, a desk area, and Sue’s hutch that was original to the space. Sue was involved at every step of the process allowing her to add personal, customized amenities to the kitchen such as a built-in coffee maker, touch-less kitchen sink faucet, pot filler faucet, and an electric dustpan that fits in the toe-kick area of the cabinetry.

The cabinetry line used is Dura Supreme and the door style is Maple Vintage Panel.

The cabinet finish is called Antique White with Espresso Glaze.

The sleek and modern cabinet hardware pulls are Jeffrey Alexander #415-128DBAC.

The gorgeous and durable countertops are Viatera Bourbon Quartz.

April Market Update from Wisconsin Building Supply

2012-04-24T11:38:00.000-05:00

Thanks to all of you who were able to join us for our annual customer appreciation event in Appleton earlier this month. We hope you enjoyed the educational opportunities, vendor showcase and fantastic prizes. Ed Hochuli, our keynote speaker, was entertaining to all who attended by sharing inside stories of the NFL and some videos of his experiences as an NFL official.

Multifamily continues to climb

We’re still seeing the most construction activity in the multifamily sector. Random Lengths reports that multifamily units represented more than one-third of both the seasonally adjusted annual rate of total starts and of total permits nationwide in February. As millions of Americans try to get out of debt and recover from the slow-moving economy, the need for rental housing appears to be driving the multifamily sector back up to a level similar to where it was in 2008, and it could continue to climb. We’ll continue to monitor how this affects the single-family sector.

New home construction

April is New Homes Month, and the National Association of Home Builders (NAHB) is highlighting data from the most recent American Housing Survey. For example, one of the virtues of a newly constructed home is the savings that come from reduced energy and maintenance expenses. Reduced operating costs mean savings over the life of ownership. The NAHB points to this as an example reason for the current system of appraisals to be updated to reflect the flow of benefits that come from features in a new home.

Building permits are on the rise

Permit levels in March rose 4.5% to a seasonally adjusted rate of 747,000 units. This is the highest level in 3 ½ years. Housing starts in March declined by 5.8% but this was due to the volatility of the multi-family market which declined 16.9%. Single family starts were down only 0.2%. So even though March starts may have declined slightly, permitting is indicating future growth. The March permits far exceeded economist’s expectations. It is expected that the housing sector could add to economic growth for the first time since 2005.

Lumber traders consider warm winter

Our numbers show the cost of lumber materials for a typical two-story house is just slightly down from last month but is higher than this time last year. U.S. softwood lumber production reached 2.295 billion board feet in January, an increase of more than eight percent over the 2.118 bbf produced in January 2011, according to the Western Wood Products Association. Softwood lumber and panel traders are keeping the unusually mild winter in mind as they size up prospects for the second quarter, considering how much spring business was borrowed in the first quarter.

We were honored to host Republican presidential candidate Mitt Romney as he campaigned before the Wisconsin primary earlier this month. Our Green Bay Door Shop was quickly transformed into a stage for Former Governor Romney and U.S. Representative Paul Ryan of Janesville, as well as a workspace for dozens of regional and national media. You can see more of the photos from the visit on our Facebook page.

WBS News: Housing Market Heats Up

2012-03-23T15:12:00.000-05:00

This week marked the official start of spring, but temperatures have made it seem as though Wisconsin skipped ahead to summer. Even when more typical springtime (or winter!) weather returns, we can be glad for the increased activity across the state recently. Work is accelerated because contractors aren’t dealing with weather delays. Customer activity is picking up earlier because they’re happy to be out and about, surveying your work in Parade and Showcase events. But the truly positive news comes from recent housing reports.

The U.S. Census Bureau released its February 2012 residential construction statistics this week. U.S. housing starts were at a seasonally adjusted annual rate of 698,000 units in February, 1.1 percent below the revised January estimate but 34.7 percent higher than the February 2011 rate, according to Random Lengths. Permits in February were at 717,000 units, up 5.1 percent from January and 34.3 percent above the February 2011 estimate. February starts remained near a three-year high, which suggests that the industry is starting to stabilize.

In the lumber market, you’ll want to note that this month marked the Random Lengths OSB Composite Price’s highest level since June 2010. In fact, our numbers show the cost of lumber materials for a typical two-story house is up more than three percent from last month and up nearly two percent from this time last year.

We will get a better idea of the improvement by looking at numbers closer to home. In the Midwest, most of the 14.7 percent increase in housing permits was in multifamily units. In the single-family sector, permits went up 2.7 percent from January to February, while housing starts increased by 13.9 percent.

WBS Customer Named NARI Regional Contractor of the Year

2012-03-19T16:55:00.000-05:00

Congratulations to Wisconsin Building Supply customer, Welhouse Construction Services of Kaukauna. The National Association of the Remodeling Industry (NARI) has named Welhouse Construction Services as the 2012 North Central Regional Contractor of the Year in the Residential Addition Under $100,000 category of its annual awards competition. Welhouse and other winners from the seven NARI regions are eligible for the NARI National Contractor of the Year Awards.

The completed addition by Welhouse Construction Services.

Welhouse Construction Services completed the addition to the Menasha home on Lake Winnebago in July 2011. The new gathering space continued the flow of the home that had previously ended at the kitchen.

“The homeowner wanted a seamless addition with craftsman-style trim and coffered ceilings, which allowed us to showcase our areas of expertise,” said owner Paul Welhouse. “The addition was the perfect improvement to this already beautiful home.”

A smooth transition to the new addition by Welhouse Construction Services.

Wisconsin Building Supply is proud to have assisted with the award-winning project by providing materials including wall, roof and floor framing, soffit, mill and trim pieces, and roof products.

Welhouse Construction Services won its regional award in the largest region of NARI, consisting of 1,903 business members from nine NARI Chapters: Greater Chicagoland, Quad Cities, Minnesota, Kansas City, Greater St. Louis, Greater Omaha, Madison, Milwaukee and the Fox Valley. A national impartial judging panel of experts within the remodeling industry and associated fields selected regional winners based on each entrant’s display of problem solving, functionality, aesthetics, craftsmanship, innovation, degree of difficulty and entry presentation.

National winners will be announced at NARI’s Evening of Excellence on Saturday, April 21, 2012, near Dallas, Texas. We wish Welhouse Construction the best of luck!

See more photos of the award-winning project by Welhouse Construction Services on Facebook.

Conference Wrap-up, Housing Gains, NAHB Honor for WBS Designer

2012-03-01T13:40:00.001-06:00

We appreciate all our customers, and it was such a pleasure to see so many familiar faces at the Wisconsin Builders Conference in Wisconsin Dells last week.

WBS won "Best Hospitality Suite"
at the WBA conference!

Thank you to those of you who stopped by our "award-winning" hospitality suite to catch up. The conference was another valuable gathering to learn, network and recognize accomplishments. We’ll continue to share photos and other information from the conference on our Facebook page, so please post your takeaways on our Wall.

Gains in Housing and Lumber Markets
Revised rates are coming out for housing starts nationwide. November and December rates were increased, and estimated housing starts in January gained 1.5 percent from there, according to Random Lengths. Analysts credit the mild winter weather and more multifamily activity for the adjustments. The numbers are not as positive when you focus only on the Midwest, likely because of a decrease in single-family home starts. But the NAHB’s latest index of builder confidence is at its highest level in more than four years, and the list of improving housing markets nationwide is also growing.

In the lumber market, Random Lengths reports that buyers accepted the news of January housing starts, and largely took it in stride. Traders seemed to be encouraged by a trend in the right direction. Board prices are continuing to advance in the major producing regions. Oriented strand board prices are edging upward in most areas, including overall gains in 7/16” OSB for the North Central region.

Introducing the WBS Marketplace
We hope you’ve been using the Wisconsin Building Supply blog to learn about industry news, community involvement, customer events, safety updates and more. Now, we’re also providing an opportunity to pick up some great deals on products from our lumberyards across the state. Keep an eye out for upcoming details about the WBS Marketplace.

WBS Designer Receives National Honor

Dawn McIntosh

Congratulations to Dawn McIntosh, Sales and Design Specialist at Wisconsin Building Supply in Windsor. Dawn received a Women of the Future grant from the NAHB Professional Women in Building Council at the International Builders’ Show earlier this month in Orlando. This grant will help fund Dawn’s efforts to expand her skills and services for WBS customers. She is working on achieving the Certified Aging-in-Place Specialist and Certified Graduate Associate designations, which will require ongoing education.

Please join us in congratulating Dawn! We’re excited for her expanding knowledge and talents to help us continue providing the best for our customers.

WBS Designer Receives National Honor at IBS

2012-02-22T12:11:00.002-06:00

Congratulations to Dawn McIntosh, Sales and Design Specialist at Wisconsin Building Supply in Windsor. Dawn received the Women of the Future grant from the National Association of Home Builders (NAHB) and Merillat Cabinetry at the annual International Builders’ Show held Feb. 8–12 in Orlando.

Kimmi Houston, NAHB Professional Women in Building National Chair; Dawn McIntosh, WBS Sales and Design Specialist; Susan Cross, Masco (Merillat) Cabinetry Brand and Communications Manager

Dawn and her fellow grant recipients are members of the NAHB Professional Women in Building Council, a select group of inspiring women who share strategies and solutions to promote, enhance and support professional women in today’s home building industry.

This grant will help fund Dawn’s efforts to expand her skills and services for WBS customers. She is currently pursuing two designations: Certified Aging-in-Place Specialist (CAPS) and Certified Graduate Associate (CGA). Dawn says the ongoing education requirements to maintain these designations prove she’s made a long-term commitment to her career.

Dawn submitted an essay for the grant application and wrote, “I have made the choice to venture into a new career, and I am loving every moment of it!” She described “working hand-in-hand with builders on kitchen and bath design” and expressed her interest in attending the International Builders’ Show to “gain more knowledge on the materials I’m selling.”

Since Dawn was selected as a grant recipient, she was able to attend a number of classes at IBS, including Marketing and Communication Strategies for Aging and Accessibility, Design/Build Solutions for Aging and Accessibility, Color Forecast and Trends for 2012, Universal Design, 90 Trend Ideas, and Great Kitchens & Baths.

Dawn had this to say about her experience at IBS:

“I was honored to receive this award and the opportunity to attend the IBS to learn about all the new products that I am selling! The show format is very helpful for someone who wants to learn about a lot of different products. The sales professionals are very knowledgeable on their products and willing to share a lot of helpful information.”

Merillat and NAHB introduced the Women of the Future grant program more than a decade ago and have since honored more than 40 professional women in building.

Please join us in congratulating Dawn McIntosh on this prestigious honor. We’re excited for her expanding knowledge and talents to help us continue providing the best for our customers.

NAHB Professional Women in Building
'Women of the Future" grant recipients and presenters.

Everyone Welcome at 2012 Washington County Expo

2012-02-09T09:29:00.002-06:00

The Washington County Builders Association has a fresh look this year. With a new Board of Directors -- including Wisconsin Building Supply's Matt McCabe as Vice President -- the WCBA is launching a variety of new initiatives for its members. For example, exhibitors at the annual Home Building & Remodeling Expo will find a revamped layout.

The WCBA wants everyone to feel welcome at the 2012 Expo, which is February 23–25 at the Washington County Fair Park Pavilion. The family-oriented theme was designed to make it easy for parents to bring the kids!

Attractions such as Green Bay Packers Hall of Famer Chester Marcol and the Betty Brinn Children’s Museum "Let's Play Railway" Engine are expected to draw many new faces to the event. Other scheduled activities for the kids include birdhouse building and face painting. Plus, a late-model race car will be on display.
That's all in addition to the opportunities to learn about products and services from WCBA Expo exhibitors and attend trade-related seminars from industry experts.

Visit the WCBA website for more information about the Home Building and Remodeling Expo and be sure to check out our Facebook Event!

Improving Housing Reports to Start 2012

2012-01-27T11:00:00.000-06:00

As we progress through one of the milder winters in history (so far, at least!) we continue to see signs of life within the housing market. Although the price of homes is continuing to be dragged down by the sale of foreclosed or distressed homes, the need for homes is starting to climb back. Within Wisconsin we see positive growth in multifamily and commercial projects, as well as more winter activity from our single-family builders.

Regionally, December housing starts rose 54.8 percent in the Midwest, following a decline in November. The National Association of Home Builders (NAHB) is also happy to report an increase in nationwide production of new single-family homes for the third month in a row.

With those numbers, we’re starting to get a more complete picture of last year’s housing market compared to the year before. The total of housing starts for 2011 shows an increase of nearly 4 percent. The number of multifamily starts increased 54 percent from 2010. While single-family starts were down overall, we’re encouraged by improvement in the past few months.

The Random Lengths Oriented Strand Board Composite is inching up, and the latest report shows pricing nearly the same as this time last year. In the North Central region, prices of 7/16” OSB are also edging upward.

Many of us are preparing for expos and other association events across Wisconsin. Keep an eye on the Wisconsin Building Supply Facebook page to find out where we’ll be. And as always, we’d like to stay up-to-date on your projects and community involvement, so let us know how you’re doing!

Winter Building Event Highlights in Wisconsin

2012-01-19T12:14:00.002-06:00

We like to keep you updated on opportunities to learn, network and generate leads! Keep an eye on our Facebook Events page to find out what’s coming up across Wisconsin.

Here are some events we’d like to highlight as we begin 2012:

Visit our booth at the Home Expo!

Look for Wisconsin Building Supply at the Brown County Home Builders Association’s Home Expo January 19–22. The KI Convention Center in Downtown Green Bay will host more than 100 professionals in homebuilding and remodeling. Make sure your customers check out the how-to demonstrations and seminars throughout the weekend.
Home Expo attendees will be able to get some great ideas from exhibitors, and then use their Expo tickets to see completed projects the following weekend. The Tour of Remodeled Homes, January 28–29, will feature 13 recently completed remodeling projects. Homes will be open from 10:00 a.m. to 4:00 p.m.
Click here to visit the BCHBA website for details about both events. You can also direct your customers to this site for a $1 discount coupon.

The Valley Home Builders Association’s Winter Wonderland of Homes is February 18–19 and 23–26. The public will be able to tour 35 newly constructed homes throughout the Fox Cities. Wisconsin Building Supply’s Appleton location will sell discounted tickets February 13–17. Visit the Winter Wonderland of Homes website and watch our Facebook page for more details.

Wisconsin Building Supply is proud to return as a sponsor of the Wisconsin Builders Conference at Chula Vista Resort in Wisconsin Dells. This year’s conference is February 22–24.

The Wisconsin Builders Association lists some great reasons to attend:

Earn CEU credits at seminars by industry leaders on business and building.
Network with fellow builders, associates and make new connections. It's open to all industry professionals!
Jumpstart your year with new business tools to remain competitive.
Meet industry experts and see innovative products at the Vendor Showcase.
Award winners will be announced Thursday night at the President's Recognition evening.

Click here to visit the WBA website for complete details and registration information. We’re looking forward to seeing you at the WBS hospitality suite!

Let us know about your upcoming events! Contact your local Wisconsin Building Supply location or write on our Facebook wall.

Looking Ahead to 2012, Housing News, Dura Supreme Deals

2011-12-19T17:16:00.001-06:00

Happy Holidays! As we near the end of 2011, we would like to take the time to thank all of you for your business and the opportunity to work with you and your customers.

Industry Outlook
We are often asked for our thoughts on what the future holds within our industry. It’s important to remember that our industry is most impacted by local events and not national issues. In real estate, appreciation in the California market does not indicate the same will be true for Detroit. It’s the same for construction – just because Florida is soft doesn’t mean Milwaukee is. As for Wisconsin in 2012, we see pockets of growth. We expect new shipbuilding contracts to impact Marinette for the better. However, this is expected to have little or no impact in La Crosse. Fundamentally, good news does seem to be slowly returning to our markets. Continue reading and you’ll learn multifamily continues to show improvement and builder confidence is climbing.

Looking Ahead to 2012
At Wisconsin Building Supply, we are working on several significant initiatives to improve our ability to support you and your business. We will be introducing new products and vendors in 2012, as well as improving and expanding our website and technical resources. We will also commit to providing faster, more accurate estimates. These initiatives are designed to improve our ability to serve you, as you serve your customers.

Multi-Family Production Continues
As we’ve seen in Wisconsin, multi-family housing is a bright spot in the broader U.S. housing market. New households tend to become renters, and the National Association of Home Builders (NAHB) believes this trend is likely to continue until consumers’ confidence returns. In the third quarter of 2011, NAHB’s Multifamily Production Index (MPI) improved for the fifth consecutive quarter. The MPI measures construction in low-rent apartments, market-rate rental apartments and “for-sale” units, or condominiums.

Single-Family Housing Shows Improvement
The cost of lumber materials for a typical two-story house is up 1.80% from last month. Nationwide, there have been some more signs of improvement. For example, builder confidence tracked by the NAHB/Wells Fargo Housing Market Index climbed six points over the past two months to a reading of 20 in November. A reading of 50 indicates a balanced market. New single-family home sales have been up for two consecutive months, and single-family starts rose by a solid 3.9% in October after declines for three months in a row.

U.S. Lumber Exports Surge
The volume of softwood lumber available to the U.S. market was up 4.1% through three quarters of 2011, thanks to domestic gains in output that offset declines in imports. Random Lengths reports that nearly 26 billion board feet (bbf) of lumber was available to the market – the highest for the nine-month period since 2008. U.S. lumber production totaled 20.339 bbf through the period, a gain of 8.8%. Total U.S. imports, at 6.759 bbf, represented a 5.1% decline, while U.S. exports surged 29.3%, to 1.148 bbf.

Featured Product and Promotion: Dura Supreme
Minnesota-based Dura Supreme cabinetry has established a tradition of craftsmanship and service that is supported by a lifetime warranty. Of Dura Supreme’s three cabinetry product lines, our WBS kitchen designers use Crestwood most often. That’s because they can create their own designs with cost-effective construction and consistent quality. Our WBS design centers are offering special prices on your Dura Supreme orders, including NO UPCHARGE on premium woods and NO CUT-DOWN CHARGES. You can get these savings through January 15, 2012.

Get Some Attention in 2012!
How about a win-win New Year’s resolution? Show off your projects, business news and community involvement through Wisconsin Building Supply. We’re eager to share customer updates and photos on the web. Click here to contact WBS, or check us out on Facebook, Twitter and YouTube.

As your local provider of building materials we look forward to working with you to create a prosperous 2012 for all of us. Thank you again for your business.

November News: Multifamily Growth, Confidence Boost, Faulty Appraisals

2011-11-11T15:00:00.000-06:00

Welcome Lyman Lumber

Wisconsin Building Supply is pleased to welcome a new member to the family. On October 28, 2011, Lyman Lumber joined the USLBM family of companies and adds to the continued growth of our organization. Lyman Lumber has been in business for 114 years and has facilities in Eau Claire, as well as the Twin Cities in Minnesota.

Market Updates
We’re always keeping our eyes on the markets, and our numbers show the cost of lumber materials for a typical two-story house is down 0.41% from this time last year. According to Random Lengths, U.S. lumber production as of August is up 8.5% from the same period of 2010 – that’s a total of 18.008 billion board feet for the first two-thirds of this year. Nationwide, August production totaled 2.301 billion board feet, up 7.3% from August 2010 and 3.1% higher than the July 2011 total. Prices for 7/16” OSB are holding steady at levels slightly higher than one year ago, and sales are in step with production for the most part.

Multifamily Growth Continues
Multifamily builds are continuing to push U.S. housing starts. The Census Bureau reports that in September, the multifamily rate surged 51.3% to its highest level since October 2008, while the rate of single-family starts rose by 1.7%. Analysts say these gains are due to the rising demand for apartments and condominiums as more Americans look at renting.

Boost in Builder Confidence
The National Association of Home Builders says builder confidence in the market for newly built, single-family homes has had the largest one-month gain its index has seen since the home buyer tax credit program helped spur the market in April of 2010.

“This latest boost in builder confidence is a good sign that some pockets of recovery are starting to emerge across the country as extremely favorable interest rates and prices catch consumers’ attention,” said NAHB Chief Economist David Crowe.

Crowe also points out that builders still aren’t giving market conditions a good rating: “One reason is that builders are facing downward pricing pressures from foreclosed homes at the same time that building materials costs are rising, and this is further squeezing already tight margins.”

Fighting Faulty Appraisals
Another recent focus is faulty appraisal practices that hurt builders who are already facing declining home prices, rising foreclosures and plunging new-home sales. The NAHB says builders’ houses are too often appraised at less than the cost of construction.

“This is not only unfair and unreasonable, but it perpetuates the cycle of declining home values, drives more home owners underwater, negatively affects housing demand and acts as an obstacle to the recovery of the housing market,” NAHB Chairman Bob Nielsen said.

Last month, the NAHB held its fourth appraisal summit with representatives of federal banking regulators, the appraisal industry, the housing finance industry, real estate and residential construction. To learn more, visit the NAHB Appraisal Issues Page.

Featured Product:
We’re continuing our monthly series of featured products with Andersen 100 Series Windows. Whether you’re replacing, remodeling or building, you can bring Andersen beauty, craftsmanship and time-tested performance into a home for less than you may expect. Andersen 100 Series windows are made with Fibrex® composite material, which allows Andersen to offer an uncommon value that’s environmentally responsible and energy efficient. Watch our Facebook and Twitter posts to learn more, or contact your local Wisconsin Building Supply to get a closer look.

Spreading the Word

We’d be glad to shine our social media spotlight on your projects and activities with photos and updates. We’re also adding more Facebook Events, such as the House of the Future Preview Party in Mount Horeb on November 16. Keep us in the loop, and we’ll spread the word!