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 Post subject: rising cost of vinyl
PostPosted: Wed Oct 19, 2005 1:52 pm 
i recently heard that 2 manufacturing plants in the south went down, this attributes for the recent spike in vinyl... any thoughts?


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 Post subject: Reply
PostPosted: Wed Oct 19, 2005 1:59 pm 

Joined: Fri Mar 11, 2005 3:43 pm
Posts: 353
Location: Illinois
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My thoughts are that if the recent increases were soley enough to put them under... then they should go under as they weren't financially stabile enough to survive industry and economic conditions. This would have put their consumers in harm's way if they had a warranty claim. Vinyl is 43% petroleum... but I'm thinking they must have had other existing problems.


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 Post subject:
PostPosted: Wed Oct 19, 2005 3:25 pm 

Joined: Wed Jun 22, 2005 11:20 am
Posts: 96
Location: Minneapolis, MN
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Here's a term I had never heard of until last week...Force Majeure. The following is from a letter from one of my siding distributors.

"The destruction of refinery capacity and piplelines due to the recent Hurricanes has casued shortages in natural gas, a prime component in the manufacture of vinyl and aluminum building products....As a result of a 300-400% increase in the cost of natural gas, and the impending shortage, all four PVC resin manufacturers have announced double digit price increases, effective immediately. The resin and other raw material suppliers have declared force majeure a contractual claim allowing them to avoid their obligations at agreed upon prices due to events that could not be reasonably anticipated or controlled."

Basically all of our siding distributors have raised prices on us as much as 17%, retroactively...even on orders we've had placed as much as 3 weeks ago. We've started getting notices from our vinyl window manufacturers that price increases are on the way as well.


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