Dear Valued Customer,

The purpose of this letter is to provide you information on the current systemic issues in the residential construction industry that are disrupting job schedules and project pricing. Hopefully, the information provided in this “State of the Industry” letter, gives you a better basis to understand why a delay or price increase may be occurring and lead to a productive discussion on potential solutions with your industry professional member of BAGI.

It is apparent that the pandemic has created an unprecedented demand for new residential construction and remodeling projects. The increasing demand has created an exponentially growing need for the entire range of building products, and the labor to manufacture and complete these projects. These product and labor issues are not unlike those you are experiencing at restaurants and the other places you shop.

The increased building activity has resulted in manufacturers with little inventory while operating at reduced capacities due to COVID restrictions, and an inability to increase their inventory levels to meet demand. In addition, the shipping and distribution systems have also been disrupted and even products that are available, cannot efficiently reach their destinations.

Each of these individual issues occurring at various times would certainly create inconveniences, but when they happen together, for an extended period, with no time frame in which they will be alleviated, unpredictable pricing and lead times are the direct result. Your industry professional strives for efficient project management and establishing reliable project timelines, but the current state of the industry makes that difficult as pricing and lead times are constantly changing. While much of the publicity has been centered around the rising cost of lumber over the past 18-24 months, the fact of the matter is that pricing for all home building materials has increased dramatically during this same period.

For illustrative purposes, here are some specific changes in price increases and product availability:

  • Windows – lead times are more than 5 months when it was 5 weeks during normal market conditions.
  • Cabinets – lead times are as high as 8 months when it was usually 3 weeks; pricing has increased more than 12 percent.
  • Garage doors – lead times are as high as 4 months when they were 2 weeks: pricing has increased more than 100 percent.
  • Appliances – lead time are 9 months when they were 3 weeks.
  • Faucets – some manufacturers have cancelled 50 percent or more of their SKU’s, because they needed to streamline production in their manufacturing plants to try and meet demand.

These are not isolated vendor or builder issues, but these are issues that all professional members of the housing industry are trying to navigate. Members of BAGI take the responsibility of delivering a quality product to you very seriously and we are working hard to make homeownership and remodeling possible in Central Indiana. Check out the latest industry news and learn about additional resources available to you at BAGI.com.

It is imperative that everyone involved in your project have patience and understanding to pursue our passion of delivering you your dream home. Welcome home!

Steve Lains, BAGI CEO

Steve Lains, BAGI CEO

Jeff Langston, 2021 BAGI Board President

Jeff Langston, 2021 BAGI Board President