We're In A Recession...What Does That Mean For You?

According to the National Economic Research Center, Unites States is in a recession, and the coronavirus pandemic is one reason behind this situation. In addition, the financial website CNET quotes it as a global recession that will last for years.

Financial analysts consider this recession far worse than the Great Recession of the 2000s. More than 20 million jobs were eliminated just in May 2020, and the total has touched 33 million jobs since the pandemic began in the U.S.

Thus, the drumbeat of a pending recession is getting louder every month, and with a notion that it will get worse, let's see how it affects you! Before we hop in, don’t forget you can save $500 off a roof replacement by mentioning the deal over the phone!

Supply Chain Issues

Supply Chain Issues began with diminishing inventories due to the pandemic. However, when the country got back on its feet, the roof repairs and replacements demand increased. Additionally, soaring inflation and rising costs added to the woes of the roof contractors. Thus, though the roof contractors were flooded with work, it was difficult for them to arrange the required roofing material.

Let us understand in detail how different supply chain level issues are adding to the woes of roofing contractors.

• Skilled Employee Shortage

The biggest challenge of this recession is duration. When the recession hit the market, it cut more than two million roof-related jobs. Therefore, many employees took a new career path or took the risk of starting their own business.

When everything is normal, the previous skilled workers are either on their own or in another industry. Thus, it is getting difficult for roof contractors to find qualified workers for work.

• Increase in Raw Material's Cost

The price rise in 2021 significantly affected the roof repairing and replacement costs. According to ABC, the construction materials cost rose by 20.8% in 2021 compared to 2020. Moreover, other materials costs related to the roofing industry also increased such as metal costs!

• Manufacturing Delays

Even if companies are trying to take manufacturing back to pre-pandemic levels, delays in other areas of the industry make it difficult for them to reach there.

For instance, due to global demand, companies are facing a shortage of methylene diphenyl diisocyanate (MDI), one of the most commonly used roofing products.

Conclusion

Supply Chain issues are going to vanish with time. However, it does not mean you should halt the roofing projects. Delaying the repairs can cost you more heavily than you can imagine. Hence, it is better to contact us and add your name to the list. But be patient; supply chain issues are here to stay in 2022. So if you’re in the Emerald Isle, Topsail Beach, Wilmington, or anywhere nearby, give us a shout for a free no-obligation quote today!