Wisconsin Building Supply News & Marketplace

November Market Update

noreply@blogger.com (WI Building Supply) — Thu, 19 Dec 2013 15:02:00 +0000

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

noreply@blogger.com (WI Building Supply) — Tue, 19 Nov 2013 15:20:00 +0000

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

noreply@blogger.com (WI Building Supply) — Mon, 07 Oct 2013 15:34:00 +0000

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.

July Market Update

noreply@blogger.com (WI Building Supply) — Mon, 29 Jul 2013 18:30:00 +0000

As we reach the mid-point of the year we all are feeling the effects of an
increasingly even and robust recovery within our industry. Lead times from
manufacturers have increased, trucking from wholesalers and mills continues to
be in high demand and labor in the field is tight and appears to be tightening
even more as we head farther into the year. We've seen some softening within
the commodity markets over the last few weeks but we are still higher than last
year at this time. It appears that the market has found a sustainable level and
is showing some slight rebound after this most recent decline. We would expect
this slow climb to be the norm for the rest of the year barring any unforeseen
storms. It's interesting to note that more mills in both framing lumber and
panels are coming back on line and capacity within the system is increasing.
This should help stabilize prices in the near term. Please work with your WBS
sales person to get a perspective on how these developments may affect your
projects specifically.

MULTI-FAMILY GAINS MORE SHARE OF HOUSING STARTS

As activity slowed in the second quarter, forecasters tracking U.S. housing
starts have dialed back projections for single-family housing, while increasing
the share of new home start-ups in the multi-family sector. According to Random
Lengths, the decrease in single-family starts is due to recent gains in interest
rates, slowed employment growth and existing home inventory. Although housing
start projections have been decreased, the forecasts are still 4% higher than
projections from January, upholding the slow and steady growth calculated for
the remainder of this year and into 2014.

NAHB SURVEY FINDS COMMONALITIES FOR BUILDERS AND SUPPLIERS

A recent survey by the NAHB provided data on building material costs across
the U.S. from May 2012 to May 2013 as reported by both builders and building
material sellers. Builders cited the following frequently purchased materials
to have recent price increases (in the order of largest percentage): framing
lumber, OSB, plywood, gypsum, trusses, ready-mix concrete, roofing materials,
and cement. Dealers also purchased the same materials most often, but cited a
higher increase in cost. These findings were consistent across all regions.
Current cost hikes can be attributed to a slow recovery starting at the
manufacturers' level. Builder Online notes, "Manufacturers experienced the same
collapse in their markets. After ramping up capacity to supply the construction
of more than 2 million homes a year, home building fell to barely 0.5 million."
The article closes with this reminder: "As production comes back, resources will
return but it will take time. The slow housing rebound may be a blessing in
disguise giving the rest of the housing support system time to rebuild."

Find the full article on Builderonline.com.

April Market Update

noreply@blogger.com (WI Building Supply) — Fri, 31 May 2013 13:56:00 +0000

It appears we have finally turned the corner and are actually having spring. Many areas are still dealing with wet ground and standing water, but it appears to be getting a little better every day. The bull market we have seen in the commodity market has shown signs of leveling off. It will be interesting to see how prices are affected by the warmer weather and the uptick in demand. As always, please continue to direct any questions to your WBS salesperson. As part of our spring kick-off we are pleased to announce our “Hit the Deck” promotion. You can earn a $150 Visa gift card by purchasing $2000 of TREX decking and railing May 1 through June 30. You can earn the gift card by a single purchase of product or by a series of smaller purchases. Please remember that only TREX product counts towards the $2000. Treated lumber, fasteners and hangers do not count. Please ask your WBS salesperson for details.

Great Recession Created Leaner Industry

Random Lengths’ annual compensation survey further illustrates that the historic market downturn of the past several years had a significant impact on the entire lumber industry. From mills to retail locations, everyone has had to do more with less sales and staff. In response to the recession’s reduced sales volumes—which were sometimes reduced as much as 50% compared to prior years—Internet transactions, leaner workforces, reduced benefits, more diversified product mixes and an increased focus on credit monitoring are now commonplace at mills, throughout the distribution channel and at retail outlets. In 2012 45% of transactions at mills were done over the Internet, up from slightly more than 25% in 2005.

While there is no question that the Great Recession has been a difficult period, there are upsides as well. As a whole, the industry has learned to live with less and is better prepared to manage costs as the market improves, suggesting a stronger and more nimble industry as we move forward.

Strong Structural Panel Output

In North America, first quarter structural panel production was at its highest level since the third quarter of 2008. According to the APA—the Engineered Wood Association—at 7.2 billion square feet, output was up 4.9% from the first quarter of 2012 and up 4.2% from the fourth quarter. Specifically, gains were greatest in OSB, which was up 8.5% from a year earlier with prices staying near double year-earlier levels. Plywood also increased 4.7% in this period.

APA Outlook for 2013: Steady Growth

Despite some lingering vulnerabilities to tax increases and government spending cuts, slow and steady growth is predicted for residential construction through 2013. Driven by improved employment numbers, increasing consumer confidence, pent up demand and firming home prices, the APA estimates housing starts to reach just short of 1 million units this year. This means the elevated demand for supplies that drove 2012 production increases will continue and in most cases accelerate in 2013. In fact, this month already, the cost of framing materials for a typical two-story home in May is up 24.14% over this month last year.

February Market Update

noreply@blogger.com (WI Building Supply) — Thu, 28 Feb 2013 15:03:00 +0000

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

noreply@blogger.com (WI Building Supply) — Thu, 31 Jan 2013 14:12:00 +0000

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

noreply@blogger.com (WI Building Supply) — Fri, 11 Jan 2013 18:33:00 +0000

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

noreply@blogger.com (WI Building Supply) — Tue, 11 Dec 2012 19:19:00 +0000

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

noreply@blogger.com (WI Building Supply) — Mon, 10 Dec 2012 17:38:00 +0000

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

noreply@blogger.com (WI Building Supply) — Mon, 10 Dec 2012 17:35:00 +0000

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

noreply@blogger.com (WI Building Supply) — Fri, 07 Dec 2012 15:14:00 +0000

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

noreply@blogger.com (WI Building Supply) — Fri, 02 Nov 2012 14:50:00 +0000

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

noreply@blogger.com (WI Building Supply) — Wed, 05 Sep 2012 13:35:00 +0000

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.

Marketplace: Cabinet Display for Sale, $2500

noreply@blogger.com (WI Building Supply) — Wed, 01 Aug 2012 13:35:00 +0000

Cabinet Display for sale. $2500.00 excludes sink and faucet

Please contact Appleton Yard

MARKETPLACE: ANDERSEN WINDOW, $339.00

noreply@blogger.com (WI Building Supply) — Wed, 25 Jul 2012 14:52:00 +0000

Please contact Appleton Yard

MARKETPLACE: KOLBE PATIO DOORS

noreply@blogger.com (WI Building Supply) — Wed, 25 Jul 2012 14:49:00 +0000

Kolbe GC6668 white patio door 6 9/16
Asking $1050

Kolbe GC10068 white patio door 6 9/16
Asking $1550.00

Pleae contact Appleton Yard

MARKETPLACE: MARVIN CASEMENT W/ TRANSOM, $2000

noreply@blogger.com (WI Building Supply) — Wed, 25 Jul 2012 14:44:00 +0000

Marvin Casement w/transom 81 3/8x76 ¾ tan
Asking $2000

Please contact Appleton Yard

MARKETPLACE: MARVIN PUSHOUT CASEMENT, $2000

noreply@blogger.com (WI Building Supply) — Wed, 25 Jul 2012 14:42:00 +0000

Marvin pushout casement 81x63 5/8” Tan
Asking $2000.00

Please contact Appleton Yard

MARKETPLACE: MARVIN STATIONARY W/TRANSOM, $275

noreply@blogger.com (WI Building Supply) — Wed, 25 Jul 2012 14:40:00 +0000

Marvin Stationary w/Transom 25” x 82 ¾” Tan
Asking $275

Please contact Appleton Yard

MARKETPLACE: 2 MARVIN CASEMENTS, $200 EACH

noreply@blogger.com (WI Building Supply) — Wed, 25 Jul 2012 14:36:00 +0000

2 Each, Marvin Casements 24”x47 ¼” Tan
Asking $200 Each

Please contact Appleton Yard

MARKETPLACE: MAPLE VENEER JAMB, $50

noreply@blogger.com (WI Building Supply) — Wed, 25 Jul 2012 14:31:00 +0000

1/6 HC Maple 4 5/8” Maple veneer jamb, LH, Col. Stop
Asking $50.00

Please contact Appleton Yard

MARKETPLACE: 6 PANEL STEEL DOOR, $148

noreply@blogger.com (WI Building Supply) — Wed, 25 Jul 2012 14:28:00 +0000

3/0 6pnl Steel RHSO 6 9/16” jamb

Asking $148.00

Please contact Appleton Yard

Wisconsin Building Supply June Market Update

noreply@blogger.com (WI Building Supply) — Fri, 29 Jun 2012 14:27:00 +0000

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

noreply@blogger.com (WI Building Supply) — Tue, 29 May 2012 16:26:00 +0000

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.