Construction is off to a good start in 2021, and Riverhead Building Supply is optimistic about the home building industry for the rest of the year.

That’s not to say that there won’t be some bumps along the way. Recently, John Callahan, president of Riverhead Building Supply, shared some insights on what to expect in the coming months.
Q: Can you tell us what makes you optimistic about 2021?

A: Demand for single-family housing is very strong across the country, driven by low mortgage rates and the continuing urban exodus. On one side, this creates significant opportunities for all of us.

Q: What’s the downside to that?

A: The flip side is that there is not enough production capacity at any level of the supply chain. Shortages and shipping delays are becoming a regular frustration.

Q: What can you tell us about pricing?

A: Prices for lumber, OSB, and plywood are continuing to climb through record territory. Supply is very tight and the producers are in the driver’s seat. The only constant seems to be that the lumber we buy today will be more expensive than it was yesterday.

Q: What advice do you have for builders, general contractors, and others in residential construction?

A: The pressure to protect profits from erosion due to future price escalation has never been more important. Our customers need to be in regular contact with their clients, to convey what is happening in the industry.

Q: Are there particular product categories that are being affected more than others?

A: There are several. The supply of treated lumber is tightening; certain lengths of 2 X 12 are extremely difficult to source. The demand for engineered lumber seems to have caught most manufacturers off guard, forcing them to implement allocations to spread their production equitably among customers. February storms in Texas crippled the production of a common resin component that is used in the manufacturing of other products including glue, insulation, vinyl, and PVC. As a result, prices of vinyl siding, composite decking, and PVC trim are expected to rise as their production costs increase. To give you an idea of how challenging the asphalt roofing situation is, it is not unusual for us to place an order and have the manufacturer confirm a shipment date six months from now.

Q: And yet, you remain optimistic?

A: Yes, I am optimistic! Residential construction is a great business with a promising future. Demand is strong, and home values continue to appreciate.  Everyone I have spoken with recently has more work than they can handle. Our buyers are working tirelessly to stay on top of our inventory to fill our customers’ needs. The forecast for the rest of the year is strong. Let’s work together to make the most of it!

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Riverhead Building Supply Corp. Acquires Rhode Island-Based United Builders Supply

Riverhead Building Supply, a 14-unit family-owned lumber and building materials dealer with locations in NY and RI announces they will acquire the assets of United Builders Supply, a 4-unit full-service LBM dealer with a solid reputation and a respected position in their market.  This acquisition expands the geographic footprint of Riverhead Building Supply and will enable them to better serve the high-end, quality-oriented customers in and around the Westerly RI, Richmond RI, Niantic CT, and Waterford CT areas where United Builders has enjoyed a strong presence for years.
Michael Slosberg, president of UBS, explains this will be good for customers and employees, “Riverhead has built a reputation on quality and service.  They recognize the importance of putting good people in front of a customer. That’s been central to the success of UBS since the business was started by my father 77 years ago.”
John Callahan, the president of Riverhead Building Supply agrees, “UBS is a strong, diversified company.  They are respected in the industry and strive to maintain good relationships with their customers.  We are excited to be entering into the hardscape arena with this acquisition and recognize the expertise UBS brings to the table.”
Upon completion of the transition, Mr. Slosberg intends to retire from his 50+ year career in the lumber and building materials industry.
The deal is expected to close in the next 60 days.

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