Supply shortages: How to strategize and stay on top
One of the challenges from the pandemic that the US economy can’t seem to shake is supply-chain shortages. From shortages of lumber and appliances to shipping interruptions, many sectors of the US economy simply haven’t been able to keep up with consumer demand as the pandemic starts to wane (knock on wood). How does this affect you, and what can you do?
How economy-wide supply-chain shortages affect you
For much of the year, historically high lumber prices have been a challenge for builders. Fortunately, prices continue to fall and stabilize. As of this writing, the cost of 1,000 board feet is right around $500. While that’s still relatively high, it’s far off from the ridiculous prices we saw in early 2021.
However, a newer problem has emerged: appliances shortages. According to a recent study from the National Association of Home Builders, 95% of home builders have faced appliance shortages in 2021. This is extremely odd, even in these extremely odd times.
Why does that matter? Because it has a ripple effect that can affect your ability to close. Without appliances, it’s challenging—even impossible—to obtain a Certificate of Occupancy (CO). If you can’t get a CO, closing on the home may be impossible.
Fortunately, there is good news. According to the White House, “These shortages and supply-chain disruptions are significant and widespread—but are likely to be transitory.” So, while these shortages are a problem now, they aren’t likely permanent.
What can you do in the meantime?
For now, the best strategy is to have a strategy. While there is an appliances pinch, it’s not like the toilet paper shortage of March 2020. Appliances are still out there, and it’s a matter providing without stockpiling.
The two biggest drivers of the appliances shortage have been overwhelming demand and lower-than-normal production. The COVID-19 pandemic was the primary driver of both of these issues. With the FDA’s approval of the Pfizer vaccine (and Moderna and Johnson & Johnson to follow), it’s possible, even likely, that supply and demand will begin to normalize.
Continue to provide a structural warranty from 2-10 HBW
As the appliances shortage eventually wanes, your buyers will expect that their homes work the way they’re supposed to. A structural warranty from 2-10 Home Buyers Warranty (2-10 HBW), can help you address that want.
When you provide a structural warranty from 2-10 HBW, you’re also telling prospective buyers several important things.
- You’re safer when you buy from me because I work with the industry leader in structural coverage.
- You get peace of mind knowing that I’m committed to building a quality home, and I back up my commitment to quality with a structural warranty.
- You’re making the right decision buying from me because if you were to have a structural issue, I have the best available solution.
2-10 is working hard to serve you the right way
Economy-wide supply shortages are tough, but they aren’t permanent. As we all weather this storm, 2-10 HBW will continue to work hard to help you do what’s best for your clients and reputation.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.