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Does James Hardie have any competition?

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May 07, 2013, 09:20 PM
SturdyNail
Does James Hardie have any competition?
What's up with the pricing on James Hardie siding? Their prices have doubled since I last obtained a quote around a year and a half ago!
I know the price of a ton of sand hasn't doubled in the last year and a half.
I'm betting their employees' salaries have not doubled in the last year and a half--I know mine hasn't!
So, do they get away with these high prices because they have no competition?
May 07, 2013, 10:11 PM
Jaybee
There are other manufacturers, I know that Certainteed makes some as does a company called Nichiha. I would bet that there are lots more. A year and half is a long time for building product prices. You are not only dealing with the cost to manufacture but also with the cost to deliver some very heavy products. Building products are also subject to changes in manufacturing runs and regional supply and demand changes. Prices change so much that suppliers are only guaranteeing quotes for three days - years ago it was thirty days or longer. Makes it tough to do estimates.

Last year I could buy 1/2" OSB for under $7 a sheet, now it's almost $14. OSB is not a Hardi product, so you can't blame it on them. Also keep in mind that the mark-up on lumber and other large building materials sucks. That's why home stores are doing better than traditional lumber yards - lumber sells with single-digit profit margins while things like tools, insulation or especially homeowner-friendly install kits have a very high markup.

Edit to add: I just noticed where you are from. Thanks to Sandy, your region is buying what.... Billions of dollars of building supplies? Supply and demand rules.

This message has been edited. Last edited by: Jaybee,


Jaybee
May 07, 2013, 11:46 PM
GardenSprite
quote:
Originally posted by Jaybee:

Edit to add: I just noticed where you are from. Thanks to Sandy, your region is buying what.... Billions of dollars of building supplies? Supply and demand rules.


I've also heard news reports of price gouging on building supplies in the wake of Sandy. Unfortunate, but it does happen.

This message has been edited. Last edited by: GardenSprite,
May 08, 2013, 09:19 AM
Sparky617
It isn't so much price gouging as supply and demand. After Katrina getting drywall was a major challenge, that's when they started importing all the crap from China with high sulfur content that corroded the electrical wires and fixtures and copper plumbing.

OSB prices have been all over the place. I haven't bought much lately, but I know during the Iraq war prices skyrocketed on the east coast because the military was shipping so much of it to Iraq and Afghanistan to build temporary and permanent structures.

During Sandy rather than letting the market dictate price on gasoline, when few stations had power and getting tankers into the stations that had power was a challenge NY gave gasoline away. Rationing by price is a great way to limit usage. Giving gas away is just a way of making really long lines and a lot of angry people when the supply inevitably runs out.


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