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Swingman Swingman is offline
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Default Tom Ingram's Industry Outlook

On 3/18/2010 9:49 AM, Swingman wrote:
On 3/18/2010 3:41 AM, wrote:

The fun part is that event though prices of oil have gone down from
where they were generating a near $4 a gallon cost of gas, the prices
of shingles, felt paper, cold process, asphalt, etc., hasn't come down
a cent.


Yep, about 18 months ago I got an email for Brinkmann roofing, who I've
used frequently for the past few years, giving advance warning that
shingle prices would double in the near term.

I used to worry about plywood being stolen overnight on a site, but
never shingles. It got so bad shortly after that email that shingles
were being stolen overnight, by the pallet load, from lumber yards ...
hell, they aren't even safe onsite, still bundled, on a roof, overnight
with no ladder onsite.

So, on the last house I finished in October I spec'ed a galvalume roof.
Pricey upfront, but that margin is narrowing with these shingle prices,
and metal is making more economic sense over the long haul, although it
would be a tough sell in some markets.


You nailed it, Bubba! I've contended that from the beginning. Now that
they've started their little justification game for price increase, the
mere suspicion that underlying prices are trending upwards is enough
trigger the greed button.


Just got a list of price increases from my roofing contractor.

Talk about collusion ... a blanket 7% increase, all effective May 22 to
June, 2010, from each of the following:

GAF
CertainTeed
Atlas
IKO
Tamko
Owens-Corning

Each of their price increase notices read almost identically.

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