Rising cost of building materials expected to impact all sectors

Atlanta, Ga.– September 2005

Hurricane Katrina will contribute to the overall increase in building materials nationwide in 2005 and beyond. While government agencies ponder the data to determine the overall impact of Katrina, most consumers are already feeling the impact in their everyday lives, primarily at the gas pump.

Gasoline rates have a far reaching impact in all products. Delivery companies are already tacking on “fuel surcharges” to shipments of materials. Some industry insiders think this is more palatable to consumers rather than raising prices because it’s simple to grasp.

For residential construction, buyers can expect a triple whammy- increase cost of materials, increased disposal fees, and general job cost increases because all operating costs are rising. Some building material costs have risen 20% or more already. Is this the death blow that has long been touted by economic naysayers? Most experts agree that the short term impact will not significantly affect the home improvement market, however with increases of 5-8% or more, new homes sales may be impacted in some markets.

“Schantz has always offered fair prices, ” said Greg Schantz, President of Schantz Home Improvement. “We will continue to provide quotes that are in line with current costs so our customers are not surprised later by additional fees from rising materials costs. Because of the speed in which we complete our work, in most cases we can lock in prices once a contract is signed. For estimates that are not acted on quickly, there may be some fluctuation in final contract costs. Bottom line – fuel costs are going to affect everything in our lives and customers should not hesitate to lock in prices now.”

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