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WHY ARE PRICES INCREASING?

Last month, we provided a wide look into the supply-chain dilemmas happening around the nation (click here for a refresh). This month, we wanted to share the challenges that some of our vendors are facing. It's important to understand why prices and lead times are building!

MidCentury received several notices from third-party contractors last month. One that particularly stood out was an email from the SVP of SRS Distributions announcing the increased cost of asphalt shingles by 10-15%. One of the reasons for this escalated cost is due to trucking companies raising drivers' compensation by 33% to stay competitive in the driver shortage environment (Business Insider). This has, in turn, led to transportation and freight costs rising. An estimated 72% of America’s freight moves by truck alone (American Trucking Associations).

This is a realistic example of the supply-chain domino effect. We're all affected in more ways than one. Heck, even our friends at JPI Electric are dealing with a 30-week backorder on T-pole meter cans. No T-poles = no building.

ANNUAL US INFLATION RATES FROM 2012 TO 2022
 

ALLOWANCE STICKER SHOCK


Dear valued customer,

 The ongoing global supply chain and logistics crisis continues to severely affect every aspect of our industry. Record transportation, labor, and energy costs are affecting all of our manufactured and outsourced products. While we have implemented efficiency and consolidation measures in an effort to mitigate further increases, broad cost increases have continued and are out of our control.

Therefore, effective March 28, 2022 we will be replacing our current Energy Surcharge with a Supply Chain Surcharge of 3.5% applied to all new orders....

Sincerely,

Victor E. Almeida President, Interceramic USA


At MidCentury, we provide allowances for most of our interior selections. When we first started building custom homes, the allowances were a proven method. It was easy to gauge a standard cost v. an upgraded cost. Today, we can only provide our best guess.

Even though we update pricing on a monthly basis, when it comes time to start purchasing for a client, prices have already gone up during this short amount of time between contracting and mobilization on a property. This has caused many of our clients to go back into the interior selection process and make several reselections to fit within their budget. We understand this frustrating process, but we also ask that you continue to stay patient with us.

Between our recently hired senior purchasing coordinator and lead interior designer, this epic duo will work alongside you to make sure you finish-out your dream MidCentury home.

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