Product price rise warning issued by PlaceMakers to customers. Photo / Supplied
Product price rise warning issued by PlaceMakers to customers. Photo / Supplied
Fletcher Building's national retail chain PlaceMakers has warned customers of price rises across many different product categories, some going up 15 per cent and Bunnings is suffering some product shortages.
A PlaceMakers manager sent an email to customers, saying price increases looked set to continue due to suppliers charging moreand trouble actually even getting the stock - referred to as "supply chain shortages" - continued.
An Arch Hill Bunnings customer said today he couldn't get the finished timber framing he wanted yesterday and had to settle for a rough-sawn product instead.
"I was after a 5m length of 4/2 to frame up a wood box but it was obvious they didn't have any. I settled for a rough-sawn alternative," he said.
PlaceMakers employs more than 2100 people at 62 stores, where it sells 74,000 products and serves more than 300,000 customers a year, but the manager said the year had already seen price increases from many suppliers "and sadly they're going to continue. The freight and raw material costs are still the main reason, driven by increased demand, both in New Zealand and overseas, and this demand is also continuing to create supply challenges."
From next month, fastenings including collated nails and brads would rise in price 8 to 10 per cent, plywood prices would go up 15 per cent, timber decking 10 per cent, polythene 8 per cent, strandfloor 10 per cent and Gorilla adhesives, sealants and foams 8 per cent.
From October, plasterboard and compounds including Gib Barrierline and GIB Weatherline would rise in price 4.2 per cent and a 12.5 per cent price rise is planned for GIB Rondo battens and accessories, metal trims, plastic control joints, GIB Rail, BMCL Beam Clip, GIB Barrierline H-stud and GIBFIX Angle.
GIB Grabber screws, GIB Weatherline screws and GIB Goldlin trims would go up 14.5 per cent.
GIB RocTape and GIB Paper Tape would go up in price 6 per cent, timber scantlings 75mm-100mm would go up 7 to 10 per cent and prices on timber wides 150-300mm would go up 10 to 15 per cent.
Bunnings - also suffering product supply shortages. Photo / Richard Robinson
James Hardie fibre cement would rise in price 5 to 15 per cent and polystyrene 14 per cent.
After October, further price rises are likely.
"Given how many price increases we're seeing from suppliers, we also wanted to give you a heads up on the ones in November that we already know about," the manager said.
Masonry anchor prices would rise in price 10 per cent, quik-drive screws 10 per cent, steel reinforcing in the form of stock bar, mesh, cut and bend would go up 12 per cent.
Although details are yet to be confirmed, there are also hints of further timber price increases pre-Christmas. These timber cost increases also mean that PlaceMakers' frame and truss prices will be rising, the manager said.
Tradespeople are trying to de-risk projects by only making quotes valid for a week. That means people are being forced to decide faster whether to go ahead with jobs or not.
"We're also seeing quote validity periods shortening down to as little as seven days. For this reason we're unable to guarantee fixed pricing beyond the expiry of the estimate you have been given," he said.
Just getting stock was a continuing issue.
"Longer lead times on products such as steel re-bar and the odd issue in fastenings, adhesives and sealants are starting to be seen. The main supply challenges are still in categories such as structural flooring, structural timber, outdoor timber - decking, fencing and retaining - and cladding in pine, bricks, cedar and fibre cement.
"It seems this trend will continue into 2022. Products that are imported, or that rely on an imported parts, are also having supply chain issues," the manager warned.
He advised customers to talk to the business about planned projects as early as possible.
"Between supply headaches and prices changes, we also reckon you should think about any clauses or contracts that have fixed pricing or late delivery penalties," he said.
Bruce McEwan, Fletcher Building's distribution chief executive, today said it was crucial customers were kept informed.
"With the ongoing supply constraints and increased demand for building materials, we believe it is important to have an ongoing and open dialogue with our customers about price changes. Keeping them as informed as possible is to help them plan ahead, work with their clients and to choose substitute products if necessary," McEwan said.
