The cost of building materials in the Cayman Islands is set to go up due to a combination of factors, local retailers say.
Hurricane Katrina presents a two-fold problem, one in that it will create a supply shortage as the United States Gulf Coast begins rebuilding after the widespread devastation.
Larry Thompson, manager of A.L. Thompson Home Depot, said it was only a matter of time before Cayman sees price increases.
‘I really don’t think we’ve begun to see the effects of Katrina because they haven’t really started to rebuild yet,’ he said. ‘But we will.’
Mr. Thompson said he expects the price of lumber, plywood and general building supplies to ‘start going through the roof’ later in the year.
Currently, A.L. Thompson has full stocks of all building materials, partially because demand has levelled off recently, Mr. Thompson said.
‘I did top up on shingles after Katrina,’ he said.
At Kirk Home Centre, Ken Dostello agrees that prices are heading up on building supplies.
‘The price is going to go up ridiculously,’ he said, noting that higher fuel costs are raising the cost of shipping as well. Those increases will have to be passed on to the consumer, he said.
‘We’re trying to buy as much as we can before prices increase,’ Mr. Dostello said. ‘Our prices will remain where they are until we start selling products purchased at a higher price.’
Mr. Dostello said there will be a major shortage of one item in particular.
‘The main thing we are likely to have a shortage in is cement board,’ he said, noting that the Gulf Coast manufacturing plant from where Cayman gets the majority of its cement board was destroyed by Hurricane Katrina.
Cement board is used for a variety of building applications here, including in walls and sub-flooring. Other U.S. manufacturers are much further north in the U.S., which will create difficulties in getting the material here, Mr. Dostella said.
Kirk Home Centre currently has only about 100 sheets of cement board in stock.
Mr. Dostella is advising customers to buy what building supplies they need now.
‘We’re telling contractors to buy it, and get it to their site now before they run into trouble getting it for their jobs,’ he said. ‘Even if the supply goes down and price goes up, the jobs still need to be completed.’
Shervin Wood at Deals, another retailer of building supplies, has not seen any price increases on his materials yet.
‘But they will go up, simply because of supply and demand,’ he said.
Mr. Wood said he has four containers of various building materials, including cement board, coming in today.
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Mr. Thompson said he expects the price of lumber, plywood and general building supplies to ‘start going through the roof’ later in the year.
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