# 35% price increase on drywall



## super rocker (Jul 8, 2009)

Amazing imperiousness from drywall manufactures to increase 35% January 1,2012. I am puking as I type.:furious:


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## Justa Hick (Nov 23, 2008)

super rocker said:


> Amazing imperiousness from drywall manufactures to increase 35% January 1,2012. I am puking as I type.:furious:


Suppliers always send notices of increases. they only stick if all the suppiers raise it. They have been using that tactic for decades. 

If your bidding a job where it would hurt you then get their quote in writing with the time period stated that they hold price for. If they raise it, then sue for breach of contract.


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## chris (Apr 13, 2011)

super rocker said:


> Amazing imperiousness from drywall manufactures to increase 35% January 1,2012. I am puking as I type.:furious:


 Ya it happens a couple times a year. That tells me there is alot of work coming but I also feel that the work might not last too long. Try locking in prices with suppliers if increase looks like its valid. What a joke.Why doesnt drywall get recycled?


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## cdwoodcox (Jan 3, 2011)

chris said:


> Ya it happens a couple times a year. That tells me there is alot of work coming but I also feel that the work might not last too long. Try locking in prices with suppliers if increase looks like its valid. What a joke.Why doesnt drywall get recycled?


because guys like us throw it in the dumpster not the recycling bin:whistling2:. Besides the recycled paper they face our drywall with already sucks imagine if they used recycled everything.


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## moore (Dec 2, 2010)

Well they can't call It a shortage this go round can they..:whistling2:


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## Final touch drywall (Mar 30, 2010)

I was told american gypsum is cutting back all production.& everyone follows suit & therefore we get hit with a increase.My supplier tells me about this "threat" of increase around this time of year every year & have yet to see a major increase.Time will tell.My estimates are only good for 30 days & so is my suppliers price.Only way to cover yer arse.


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## Tim0282 (Jan 8, 2008)

My suppliers are saying they won't accept futures bids and they won't allow pre- buying.
At least if they increase, it will be all of them.
They usually threaten about twice as much as they actually increase.
We are all in the same boat.


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## harvey randall (Nov 23, 2010)

*cost increase.*

the year i started- rock cost 17 dollars a 1000 sq ft. first time i stocked a house, was 25 dollars a thousand. now= gypsum is the most plentiful minerial on this planet. and yet- usg punks dictate our policey. rock must be about , like the price of gold. cuz, we never grabbed our ball sack, and said no more. coure i been complaing for 30 year. oh well.


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## cdwoodcox (Jan 3, 2011)

Just talked with my supplier he confirms 30% increase on all wallboard. 10% or higher on all mud. 1 st of the year.


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## cdwoodcox (Jan 3, 2011)

If we weren't such a disorganized trade we could all raise our prices together and they would have to pay us.


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## storming34 (Nov 25, 2011)

We sould all hope that the 35% increase in drywall sticks for all of next year, It might help everyone be profitable!


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## storming34 (Nov 25, 2011)

Here's a Mfg copy of the increase.

*NATIONAL GYPSUM COMPANY*
To Our Customers:
Our business has continued to endure the effects of an unprecedented housing market decline and a
challenging economy. Wallboard demand has been essentially flat and at historically low levels for the
better part of three years running. The outlook for the next 12 to 18 months might at best be described
as a slow “climb out.”
In response to these circumstances, we have downsized and streamlined our operations. We have also
critically examined our internal policies and practices to identify other ways to improve administrative
efficiencies and our financial performance. As a result, we have also determined that the present pricing
levels and practices under such circumstances are not sustainable. Therefore, after careful consideration,
we have decided to implement the following actions:
The practice of providing job quotes is broken and counterproductive to meaningful and consistent price
management needed to support profitability. Therefore, effective immediately, we will discontinue for all
product lines the policy of providing job quotes. All job commitments previously made, and for which we
have received a signed Notice of Intent from the customer, will be honored. This procedure was outlined in
our May 19, 2009 communication letter to our customers. We will strictly enforce this policy and have set
a date of October 14, 2011, by which to verify those commitments.
In addition, National Gypsum Company will implement a price increase of 35% on all wallboard products,
to be effective on January 1, 2012. It is our intention that the resultant price (up 35%) will apply for all of
2012. We are providing this notice well ahead of the effective date of the increase in order that you can be
guided accordingly in your planning for 2012.
We will offer guidance on projects that extend into 2013 in future communications.
Price increases on other product lines will be communicated at a future time.
AREA: Entire U.S. and all Export​


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## super rocker (Jul 8, 2009)

storming34 said:


> Here's a Mfg copy of the increase.
> 
> *NATIONAL GYPSUM COMPANY*
> To Our Customers:
> ...


 
They are the victims?


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## super rocker (Jul 8, 2009)

Supply and demand?


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## Bill from Indy (Apr 26, 2010)

curious to see if other manufacturers are doing this as well....usg/certainteed/lafarge to name a few.....if they dont, I could see this putting natl gypsum under

this could be a problem already existing...i am starting to see a lot less natl gyp board around here and a lot of the mud suppliers that pushed proform are going to usg and lafarge


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## super rocker (Jul 8, 2009)

ALL manufacturers raising their prices 35%. Certainly constitutes price fixing.


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## msd (Apr 10, 2011)

i heard thru the grapevine that lafarge is on allocations and national has shut down a couple of plants. were going to create a shortage so we can run the price up.


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## moore (Dec 2, 2010)

''I could see this putting natl gypsum under''


GOOD.


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## 2buckcanuck (Jul 9, 2010)

cdwoodcox said:


> If we weren't such a disorganized trade we could all raise our prices together and they would have to pay us.


Do I hear Union talk:whistling2:


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## storming34 (Nov 25, 2011)

Bill from Indy said:


> curious to see if other manufacturers are doing this as well....usg/certainteed/lafarge to name a few.....if they dont, I could see this putting natl gypsum under
> 
> this could be a problem already existing...i am starting to see a lot less natl gyp board around here and a lot of the mud suppliers that pushed proform are going to usg and lafarge


Bill, Yes they all are going up. I have increase letters from all the manufactures, I can post them if you like. They all say 35%.


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## storming34 (Nov 25, 2011)

super rocker said:


> They are the victims?


Super Rocker, I wouldn’t call them quite victims, but they have been losing money. Most drywall mfg’s are on trading so you can see quarterly profits/loss statements on line.
Take USG, they haven’t had a profitable qtr in almost 4 years.


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## storming34 (Nov 25, 2011)

*CertainTeed Gypsum*
November 11, 2011
To: Our Valued Customers
Re: Price Increase Announcement – Gypsum Board Products
Effective markets: All US and export
In the CertainTeed Gypsum customer price bulletin dated October 03, 2011, we advised that
CertainTeed would no longer be providing job quotes. This policy is now firmly in place and is
being strictly enforced. We also stated that on or about November 15, 2011, we would
announce a price increase effective January 01, 2012.
Accordingly our price increase, intended to be in effect for the calendar 2012 year, will range
between 35% and 37% for all gypsum wallboard products. This range is necessary because of
the varied values of our extensive product line. You may contact your area territory manager or
regional manager for specific amounts.
We thank you for your business and continued support of CertainTeed Gypsum during these
very challenging economic times.
Sincerely yours,​CertainTeed Gypsum


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## storming34 (Nov 25, 2011)

​*USG Corporation.* 
To Our Customers: 
The construction industry has been in decline since mid-2006. During this period, U.S. wallboard demand has decreased over 50%. Over the last five years, USG Corporation has aggressively sized its wallboard business to reflect the lower demand levels. We have undertaken the following cost reduction initiatives: 
 3.8 billion feet wallboard capacity reduction 
 Idled 14 wallboard lines, 4 paper mills, 2 quarries and 1 specialty line 
 Over $450 million in cost reductions, including the reduction of 5,000 employees 
During this same period we have continued to invest in technologies that have resulted in a number of exciting new products for our customers including: Sheetrock Brand UltraLight® panels, SECUROCK® glass mat panels, Sheetrock Mold Tough and other value added products. We have a solid pipeline of new products that will come to market over the next few years. 
One aspect of our business that has not been effectively updated for today’s market conditions is the use of job quotes. Job quotes were originally developed to provide price certainty for large jobs bid far into the future, but few such jobs exist today. Our past job quote policy is no longer appropriate as we seek to improve the consistency and administrative efficiency of our pricing policies. 
In light of the changing market, USG will no longer offer job quotes and/or price protection on wallboard, effective immediately. USG will establish new pricing which will be effective on all wallboard purchases beginning January 1, 2012. The price established on January 1 will be guaranteed for all of 2012, which will provide our customers with price certainty as they bid projects throughout the year. We will notify you of our new price schedule on December 1. 
USG will honor any job quotes that have been committed to USG with a purchase order by October 15, 2011. We will have future communications providing guidance to our customers for projects that extend into 2013. Your USG Sales Representative will be in contact with you shortly to review this change in policy. 
Sincerely, 
USG Corp.


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## storming34 (Nov 25, 2011)

super rocker said:


> ALL manufacturers raising their prices 35%. Certainly constitutes price fixing.


*Super Rocker*, 
Price fixing is the first thing that comes to mind, but that’s very hard to prove. The first question is, 35% of what? Each distributor pays a deferent cost from each manufacture, the larger distributors maybe getting a better cost from one or 2 mfg’s, so who knows what 35% means?
The big part of this price increase announcement is the “No Job Quote” policy.
This will help the smaller drywall contractor be competitive with the larger contractor who gets a job quote for some big job, then uses it for all his work.


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## chris (Apr 13, 2011)

storming34 said:


> Super Rocker, I wouldn’t call them quite victims, but they have been losing money. Most drywall mfg’s are on trading so you can see quarterly profits/loss statements on line.
> Take USG, they haven’t had a profitable qtr in almost 4 years.


 they still are able to fuel up there racecar every weekend:whistling2:. Lets see. Shutdown plants,layoff 5000 employees,use crappier materials to make inexpensive board and by the way we need to almost double our price to keep up and running.We all need to buy as much rock and sell it back after increase and make a 35% profit. This will only hurt the smaller businesses as all the bigboys are able to pre purchase large amounts and keep there prices more competitve .


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## sawbrk1 (Oct 28, 2011)

I received copies of the increase from 5 different board companies.
I also noticed that GP is not on board with this, and in fact I heard from my supplier that GP has their lawyers working on the price fixing issue.
All it will take is one company to not go along with this, and the whole thing will blow up in their faces.
I think USG crying about not making money, and people losing their jobs, is pretty lame. How many drywall companies have gone out of business in the last three years, and all of their employees are either out of work, or finding different trades
I know in my own case, the company I worked for is closing its doors after 33 yrs. in business, I've been there 32 years, and at the age of 55 having to start my own.
Scary times


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## super rocker (Jul 8, 2009)

storming34 said:


> *Super Rocker*,
> Price fixing is the first thing that comes to mind, but that’s very hard to prove. The first question is, 35% of what? Each distributor pays a deferent cost from each manufacture, the larger distributors maybe getting a better cost from one or 2 mfg’s, so who knows what 35% means?
> The big part of this price increase announcement is the “No Job Quote” policy.
> This will help the smaller drywall contractor be competitive with the larger contractor who gets a job quote for some big job, then uses it for all his work.


 
This will help no one because there is zero demand. Just for the record, USG has filed bankruptcy 3 times in the last 18 years and they are heading there again.


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## harvey randall (Nov 23, 2010)

*drywall fumes sucks- china inc.*

usg and all the rest of them sonsa b,- cry me a river- build a bridge and get over it. when times were good- price went up, when times were bad, price went up. price fixeing just like our brother say. cd say right- we dont hang together- so like tom paine say- we hang separatley. the unique thing about tapers is they dont need any one else to help. even a hanger with an onney need help sometime-stairwell or what ever. look alll the trades over- we are a unique lot. its great, but its also our downfall- as mr. woodcox stated. " HERE'S A CHILLING THOUGHT" 50 TAPERS-WITH THE SAME AGENDA.-9CAN YOU IMAGE THAT ?-


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## rick (Dec 8, 2011)

*increase*

What business plan that you are aware of , can cut production and increase price 35% and maintain market share? Not to mention , even stay in business.


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## rick (Dec 8, 2011)

No business would even contemplate that action, unless they covered base with their fellow competitors! I think it use to be called " Price Fixing "!!!!


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## Final touch drywall (Mar 30, 2010)

All this 35% increase scare did,was cause every supply house to run out & "stock" up.Now it makes it harder to get supply's.I need 1300 pieces of rock in the next month,& am being told it may be an issue with the brand I "want". I call this whole scare a total scam....Bottom line is>>>l "yearly" #ers were down,so in order to raise the yearly quota in sales,they give everyone this increase bull****.


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## harvey randall (Nov 23, 2010)

*not enough*

this makes me wanta heave, not enough of the most plentiful mineral on the planet- mainly- gypsum?. and speaking of gyp- thats what we are getting. corporate government-. now how do we as the working class change it? in my humble opinion there is only one way and we cant do it. its called just say no, no more- not gonna buy it, gonna sit, not gonna do it, gonna stop, not-see---------- if we were evere going to, we would have, already. just pay and save the complaint- it juast cost you energy. sorry- take care-harve but if you get serious- im in.


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## Tstang (Dec 20, 2011)

I'm a carpenter in manhattan and my boss has been delivering a few hundred boards a day because of the increase. Piles of rock everywhere!!! Hard to maneuver around though:furious:


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## cdwoodcox (Jan 3, 2011)

Tstang said:


> I'm a carpenter in manhattan and my boss has been delivering a few hundred boards a day because of the increase. Piles of rock everywhere!!! Hard to maneuver around though:furious:


 your boss is smart. You won't get 35% interest on your money in any bank.


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## moore (Dec 2, 2010)

Some of this garbage aint worth $3 a board.

I need to balance my budget also ...Can I go up on my price 35 %?


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## drywallerinnyc (Jan 23, 2012)

*i am seeing some price softness*

and job quotes from my supplier. looks like this price increase wont hold.


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## 2buckcanuck (Jul 9, 2010)

Alexander_john said:


> Fiberglass fibers were invented by Russell Games Slayter of Owens-Corning in 1938, and in 1971, the New York Wire Co. began manufacturing fiberglass mesh. It wasn't incorporated into the drywall industry until the late 1980s, but today a number of companies, including New York Wire and United States Gypsum, manufacture fiberglass mesh tape for use with drywall.


Well:whistling2:, since my voodoo worked on Kiwiman


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## Mudshark (Feb 8, 2009)

2buckcanuck said:


> Well, since my voodoo worked on Kiwiman


Easy on the new guys eh!


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## 2buckcanuck (Jul 9, 2010)

Mudshark said:


> Easy on the new guys eh!


voodoo


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## Mudshark (Feb 8, 2009)




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