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SUPPLY
Gypsum board supply is not currently an issue anywhere in our market area. Lead-times for the stocking of materials are currently at two to three days maximum. At this time, we expect plentiful supplies through 2009. Many factors influence the supply of gypsum board, and this situation can change quickly. We will continue to keep you updated with the latest lead-time and supply information.
OUTLOOK FOR NEXT SIX MONTHS:
Slowing residential demand for wallboard, lower input costs and abundant supplies point toward a stable market throughout the remainder 2008. Pricing is expected to remain steady through the end of 2008. However, many factors influence manufacturer materials pricing, and this could change rapidly.
Since the last quarter of 2007, our suppliers have been indicating a price increase to be on the horizon for drywall board and related products. More than once, since then, we have received verbal notice from the suppliers to that effect but the announced increase has not taken effect for any number of reasons. The current price of board is nearly as low as it was in 2003 when the price "bottomed out" and then slowly started an upward climb, peaking by the first quarter of 2007. Since the peak in early 2007 the price of board continued to slowly decrease as the housing market deteriorated and the inventory of board remained high in relation to demand. The downward movement of drywall pricing stopped by the end of 2007 and has remained flat to date. That "out of kilter" relationship of too much board inventory for needed jobs has balanced itself to where board production and need are equally in line. Hence the reason for the price of board remaining "flat" for the ending of 2007 and first months of 2008.
A flat pricing market is an indication that the next movement of board price will not be down but up. We continue to receive price increase letters for our suppliers but none have taken effect. The first increase or decrease in board price has always been a precursor to the near future trend. Expect board to increase something this year but the decreases are over.
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LAST UPDATED: July 6, 2008
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