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Looming Drywall Increases - Are you Prepared?

I was talking with someone who has knowledge about the drywall market, and he gave me some important (anonymous) information.  I hope it is helpful.  ~ Brent "You have received accurate information regarding gypsum board prices increasing in 2013 an additional 25%, (+ $2 per sheet on 5/8” Fire Rated) .  Announcements were issued as far back as July 2012 that this was imminent, as manufacturing costs have increased over the last few years and demand has increased significantly on a national level.  I received a report from the Commerce Department stating that (residential single and multifamily) construction starts in October 2012 were the highest since July 2008.  We are definitely on an upswing and I estimate that what we’re seeing with drywall will occur also with lumber, concrete, steel, roofing shingles, etc. in the very near future.  Several contractors are attempting to secure warehouse space to store materials that will spill into January on large projects already under construction.  The situation reminds me of the housing boom of 2004-2009 which coincided with the most damaging hurricane seasons in recent history (Ivan, Katrina, Wilma, and Ike) when suppliers, contractors, and importers sought relief from elevated gypsum board prices and began importing what has become known as “Chinese Drywall”.  The results of which are still being debated in courtrooms today.  My suggestion to my general contractors/developers is to adjust budgets and enforce schedules.  I have not heard of additional price increases on drywall after this one in January, but I always include a 30 da......
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