Supply Chain | Episode 16 | Carmel Builders Sidelight Series

October 28, 2021

We’re sure many of you are wondering what’s going on with renovation and builder supply chain. Carmel Builders President & Owner Louis Weiher goes over his opinions on the matter and what you should take into consideration when deciding on your next renovation project.


Hi, everybody. As we’re filming this, it’s October of Twenty Twenty One, and I want to talk about a topic that I’ve been asked a lot about that’s supply chain. We’re obviously all dealing with it in our day to day lives. But I want to give you a little bit of kind of an overview of what we’re seeing in the remodeling industry. And if you’re in the middle of a project or you’re planning a project, something that you should be aware of really where we are today.

The big question for today is really what’s next on our supply chain issue list? We’re all adjusting to it. So whether it’s your current contractor, it’s your plumber, your electrician or if it’s just you as a homeowner doing work on your own. We’re still adjusting to what is really getting pinched in that supply chain. I was talking with someone not too long ago and we were talking about the fact that when we talk about supply chain, it’s not like it was with lumber, where lumber, you know, it’s one item, you know, it’s it’s a tree.

We’re talking about supply chain issues with with windows. For instance, a good example where you have the lumber, obviously to make the window, you’ve got the glass, you’ve got the adhesives in the fasteners to put together, you’ve got plastics.

And for the seals, all those different things need to come together, get to the factory before they can build it. And if any one thing goes amiss, well, we get delays. And so right now, that’s what we’re doing. We’re adjusting to this new normal. I’m trying to figure out what the heck is going to be delayed. I don’t know what it’s going to be on your project, but I can pretty much guarantee if you’re doing a remodeling project right now, something is going to get stuck in that supply chain. Something is going to get delayed.

So what we’re dealing with right now, big thing is delays. And of course, you know, time is money, so there are some costs incurred with that as well. I think as we move into twenty twenty two, that’s going to get a little bit better. I don’t know that we’re going to get things any faster, but I think that we’re all as an industry going to start to kind of figure it out and really what that means. So I think what you’re going to see is projects are going to take longer, but you’re going to know that they’re taking longer before they start. And what we’re having right now is maybe a three month project that becomes four months because we didn’t know that we couldn’t get the tile or the carpet or what have you in.

But I think as we get into twenty twenty two, we’re going to start seeing that these things become known entities versus the unknown that we’re dealing with now. So you’re going to see projects are going to take longer. Again, time is money. So unfortunately, if you’re hoping for prices to come down, they’re probably not going to happen in the next year or so. But what’s going to happen in the future once we kind of get this figured out? I’ve heard some pretty optimistic people smarter than me telling us that there is an end to the supply chain issue. Maybe it’s mid to late. Twenty twenty two, maybe it’s earlier. I certainly don’t know, but I think what we’re going to see in our industry is a bit of a change in the model of how manufacturers make products for a long time.

What you would see is that manufacturers would make a lot of product, keep it in inventory and then we could order it and we could get it. I think that that’s going to change. I think what you’re going to see is a lot more items and products being made to order. Speaker1: So what you’re going to find is that you place an order goes to the factory, it gets manufactured, it gets shipped back to you, install it. That is going to mean that things are going to continue to take longer. And I think when you get into that higher end into that luxury level of products, you’re going to see more and more of that.

I just think that manufacturers are just a little bit too hesitant or are going to be too hesitant to just build up a backlog of inventory for several years. So I think we’re going to see longer lead times coming out. But I think really, you know, from where today uncertainty to where we’re going to get through is much more certainty. But the speed that we could get stuff, I don’t think we’re getting back to that for several years. So that’s kind of where we stand right now. Who knows, this could all change in a month or two, but I do feel there’s a light at the end of the tunnel. So if you’re going through a project right now or you’re planning one, just try to best be patient, be nice to the people you’re working with. Thanks.