Pricing Notification - Gypsum Manufacturers

To our valued customers,

The majority of gypsum manufacturers have taken unprecedented action in announcing a 35% price increase effective January 1st 2012 as well as ceasing job quoting effective immediately. These policies come at a time when after several years of unprofitable business are facing another flat year of volume ahead and manufacturers are now focusing on price realization to return to profitability. The manufacturers have implemented an "allocation" of wallboard this week through the end of the year so that distributors will not be successful at stock piling wallboard in anticipation of the increases. Please understand that no distributor can absorb this type or level of increase or lack of job price protection. Therefore, Allied Interior Products will increase prices on products as illustrated below:

ProductsIncreaseEffective Date
Gypsum Wallboard35%01/01/2012
Joint Treatment & Finishes5%01/01/2012
Screws & Fasteners10%01/01/2012

We are committed to keeping you up to speed with accurate information while providing you with the best products, service and competitive prices in the industry and will keep you informed of any further information or occurances in a timely manner.

As you make preparations for your business next year, you should include price escalation clauses in your contracts. Please communicate closely with your sales representative or branch manager on any upcoming projects you may have.

We want to help you remain competitive and profitable. Please do not hesitate to call us should you have any questions or concerns.

We thank you for your business and appreciate the opportunity to serve you and your staff.

Sincerely,

Clint Valleau
Director of Purchasing and Replenishment
Interior Products Division
Allied Building Products Corp.

All steel related quotes will be valid for 30-days from the date of the quotations. All projects not awarded to Allied or our affiliates within 30 days of the quotation will be void. All new job quotes will reflect the appropriate increases as they develop. Please contact your Sales Representative with any questions or concerns.

Key Words:   Price Alert     Interiors