Rotten Tomato Stocks
No Result
View All Result
  • News
    Stocks Sink as Markets Brace for Big Week With Fed, Earnings

    Stocks Sink as Markets Brace for Big Week With Fed, Earnings

    Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss

    Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss

    Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023

    Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023

    Twitter Faces Lawsuits Over Unpaid Rent for US HQ, UK Office

    Twitter Faces Lawsuits Over Unpaid Rent for US HQ, UK Office

  • NYSE
    Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

    Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

    DaVita Inc. stock falls Monday, still outperforms market

    DaVita Inc. stock falls Monday, still outperforms market

    Marcus & Millichap (NYSE:MMI) Trading Down 6.3% on Analyst Downgrade

    Marcus & Millichap (NYSE:MMI) Trading Down 6.3% on Analyst Downgrade

    AmEx Profits Fall 9% as Customers Fall Behind on Payments

    AmEx Profits Fall 9% as Customers Fall Behind on Payments

  • NASDAQ
    Orchestra BioMed Down Almost 17% on Second Day of Nasdaq Trading

    Orchestra BioMed Down Almost 17% on Second Day of Nasdaq Trading

    Workhorse Group Inc. stock falls Monday, underperforms market

    Workhorse Group Inc. stock falls Monday, underperforms market

    World Acceptance (NASDAQ:WRLD) Shares Gap Down After Analyst Downgrade

    World Acceptance (NASDAQ:WRLD) Shares Gap Down After Analyst Downgrade

    Here’s Why Qorvo (NASDAQ:QRVO) Can Manage Its Debt Responsibly

    Here’s Why Qorvo (NASDAQ:QRVO) Can Manage Its Debt Responsibly

  • OTC
    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    Corus Entertainment 4Q Profit Falls

    Corus Entertainment 4Q Profit Falls

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

  • TSX
    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    Bitcoin Is Falling: Should You Buy the Dip?

    Bitcoin Is Falling: Should You Buy the Dip?

    CN Rail Stock Is So Undervalued That it’s Absurd

    CN Rail Stock Is So Undervalued That it’s Absurd

  • News
    Stocks Sink as Markets Brace for Big Week With Fed, Earnings

    Stocks Sink as Markets Brace for Big Week With Fed, Earnings

    Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss

    Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss

    Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023

    Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023

    Twitter Faces Lawsuits Over Unpaid Rent for US HQ, UK Office

    Twitter Faces Lawsuits Over Unpaid Rent for US HQ, UK Office

  • NYSE
    Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

    Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

    DaVita Inc. stock falls Monday, still outperforms market

    DaVita Inc. stock falls Monday, still outperforms market

    Marcus & Millichap (NYSE:MMI) Trading Down 6.3% on Analyst Downgrade

    Marcus & Millichap (NYSE:MMI) Trading Down 6.3% on Analyst Downgrade

    AmEx Profits Fall 9% as Customers Fall Behind on Payments

    AmEx Profits Fall 9% as Customers Fall Behind on Payments

  • NASDAQ
    Orchestra BioMed Down Almost 17% on Second Day of Nasdaq Trading

    Orchestra BioMed Down Almost 17% on Second Day of Nasdaq Trading

    Workhorse Group Inc. stock falls Monday, underperforms market

    Workhorse Group Inc. stock falls Monday, underperforms market

    World Acceptance (NASDAQ:WRLD) Shares Gap Down After Analyst Downgrade

    World Acceptance (NASDAQ:WRLD) Shares Gap Down After Analyst Downgrade

    Here’s Why Qorvo (NASDAQ:QRVO) Can Manage Its Debt Responsibly

    Here’s Why Qorvo (NASDAQ:QRVO) Can Manage Its Debt Responsibly

  • OTC
    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    Corus Entertainment 4Q Profit Falls

    Corus Entertainment 4Q Profit Falls

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

  • TSX
    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    Bitcoin Is Falling: Should You Buy the Dip?

    Bitcoin Is Falling: Should You Buy the Dip?

    CN Rail Stock Is So Undervalued That it’s Absurd

    CN Rail Stock Is So Undervalued That it’s Absurd

No Result
View All Result
Rotten Tomato Stocks
No Result
View All Result

Shortages of Supplies and Workers Will Delay Gulf Rebuilding

Editorial Staff by Editorial Staff
September 6, 2021
0
Shortages of Supplies and Workers Will Delay Gulf Rebuilding

Joe Sobol, owner of Big Easy Construction in New Orleans, has bad news for homeowners who’ve been calling about roofs damaged by Hurricane Ida.

Joe Sobol, owner of Big Easy Construction in New Orleans, has bad news for homeowners who’ve been calling about roofs damaged by Hurricane Ida or to get an update on renovations that were scheduled before the storm ripped through the area.

The job will cost a lot more than usual — and take much longer, too.

Ida slammed into the Gulf Coast — then took its destruction to the Northeast — at a time when building contractors were already grappling with severe shortages of workers and depleted supply chains. The damage inflicted by Ida has magnified those challenges.

The struggle to find enough skilled workers and materials will likely drive up costs, complicate planning and delay reconstruction for months.

“My expectation,” said Ali Wolf, chief economist at the real estate research firm Zonda, “is that it only gets worse from here.”

Consider that Lake Charles, Louisiana, 200 miles west of New Orleans, still hasn’t recovered from the damage left when Hurricane Laura tore through the area a year ago.

The challenges facing construction companies stem from what happened after the nation endured a brutal but brief recession when the viral pandemic erupted in March 2020: The economy rebounded far faster and stronger than anyone expected. Businesses of all kinds were caught off-guard by a surge in customer demand that flowed from an increasingly robust economic recovery.

Workers and supplies were suddenly in short supply. For months now across the economy, businesses have been scrambling to acquire enough supplies, restock their shelves and recall workers they had furloughed during the recession.

Construction companies have been particularly affected. Among building executives Zonda surveyed last month, 93% complained of supply shortages. Seventy-four percent said they lacked enough workers.

And that was before Ida struck.

“Natural disasters do cause a strain on building materials, reconstruction materials and on labor,” Wolf said. “The difference today is that the entire supply chain has been battered even before Ida’s occurrence. You really have all these things hitting at the exact same time. Frankly, the last thing the supply chain needed was extra strain.’’

A result is that the cost of materials and supplies has been surging. Combined prices for windows, doors, roofing and other building products jumped 13% in the first six months of this year, according to Labor Department data. Before 2020, by contrast, such aggregate prices would typically rise a bit more than 1% annually, on average, in the first six months of a year.

Prices for steel mill products were up more than twofold in July from a year earlier. Gypsum products, which are needed for drywall, partitions, ceiling tiles and the like, were up 22%.

Henry D’Esposito, who leads construction research at the real estate services company JLL, said the toughest challenge in rebuilding now is the delays in acquiring drywall, glass, steel, aluminum and other materials.

“A lot of the materials that you would need for any project and especially something this urgent — you’re not able to get on site for weeks or months,” D’Esposito said.

Sobol, in the course of his career, has ridden out some of the biggest hurricanes to strike Louisiana, including Betsy in 1965, Camille in 1979, Katrina in 2005 and Ida last week. On Friday, he received a text from a client who had hired Big Easy for home renovations. The client wanted to know whether the initial cost estimate still stood.

“I said, ‘You can probably add 10%,’ “Sobol said.

And now the project will likely take nine months instead of six.

“We’re having to jump through hoops,” said Robert Maddox, owner of Hahn Roofing in Boyce, Louisiana, 200 miles northwest of New Orleans. “We’re having to pay more for labor. We’re having to pay more for supplies. We’re having to bring supplies in.’’

The insurance companies that are footing the bill for many of the hurricane repairs, Maddox said, can pose an additional burden.

“I’ve spent more time fighting with insurance companies over prices than I did roofing houses,” he said.

Jacob Hodges, co-owner of a family roofing business in Houma, Louisiana, complains that shingles are in such short supply that it’s hard to buy them in the same color consistently. One day, they’re available only in black; the next day, only gray.

Hodges takes what he can get. So do his customers, who are desperate to have their roofs patched up or replaced after the storm.

Then there’s the labor shortage.

Among workers in short supply are framers, who build, install and maintain foundations, floors and door and window frames; carpenters; electricians; plumbers; and heating and air-conditioning specialists.

“Workers — they have the power,’’ said Wolf, the economist at Zonda. “They can go where they can make the most money. So if you need access to workers, you’re going to have to pony up.’’

Maddox said typical pay for roofers has soared 20% over the past year or so. Some can earn $400 a day.

“If you don’t pay them,’’ he said, “someone else will.’’

In normal times, demand for their services was so uneven that roofers often split their time working for different contractors.

“Now, we all need them,’’ Hodges said.

Making matters worse, the power is still out in many places, gasoline is in short supply and the Gulf Coast weather is sweltering.

With nowhere to stay, workers involved in reconstruction have to drive in from afar. Maddox said he has roofers commuting in from Lake Charles, a three-hour drive from the hurricane zone.

“We’re losing half our time driving,’’ he said.

He wishes that hotels that have running water would reopen — even without electricity — so that workers would have a place to stay.

“Those guys don’t mind cold showers,’’ he said.

Weighing the magnitude of the hurricane damage against the shortage of supplies and workers, Hodges envisions a prolonged, grinding period of reconstruction from Ida.

“To get everything back like it was,” he said, “you’re talking … well, we’ll probably be working on this this time next year.’’

Related Posts

Stocks Sink as Markets Brace for Big Week With Fed, Earnings
News

Stocks Sink as Markets Brace for Big Week With Fed, Earnings

January 31, 2023
Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss
News

Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss

January 30, 2023
Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023
News

Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023

January 26, 2023
Twitter Faces Lawsuits Over Unpaid Rent for US HQ, UK Office
News

Twitter Faces Lawsuits Over Unpaid Rent for US HQ, UK Office

January 25, 2023
Load More
Next Post
Blackbaud (NASDAQ:BLKB) Takes On Some Risk With Its Use Of Debt

Blackbaud (NASDAQ:BLKB) Takes On Some Risk With Its Use Of Debt

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

POPULAR NEWS

CNH Industrial (NYSE:CNHI) Use Of Debt Could Be Considered Risky

CNH Industrial (NYSE:CNHI) Use Of Debt Could Be Considered Risky

April 14, 2021
CN Rail Stock Is So Undervalued That it’s Absurd

CN Rail Stock Is So Undervalued That it’s Absurd

May 2, 2021
US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

June 17, 2021
Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

September 14, 2021
10 Warning Signs That Should Tell You “This Stock is in Trouble”

10 Warning Signs That Should Tell You “This Stock is in Trouble”

November 11, 2019

EDITOR'S PICK

Is MGP Ingredients (NASDAQ:MGPI) A Risky Investment?

Is MGP Ingredients (NASDAQ:MGPI) A Risky Investment?

April 3, 2022
Altria Group (MO) falls 2.27%

Altria Group (MO) falls 2.27%

April 25, 2021
Electronic Arts stock falls as forecast comes in short of expectations

Electronic Arts stock falls as forecast comes in short of expectations

February 2, 2022
Is Eagle Pharmaceuticals (NASDAQ:EGRX) Using Too Much Debt?

Is Eagle Pharmaceuticals (NASDAQ:EGRX) Using Too Much Debt?

December 16, 2021

Stay Updated

Get breaking news delivered straight into your inbox

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Rotten Tomato stocks is a wholly-owned subsidiary of Grainne Capital Limited.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Rotten Tomato Stocks cover the companies and markets that are declining, failing or headed for disaster. We help investors spot the down tends and recognize when something smells rotten.

RECENT POSTS

Stocks Sink as Markets Brace for Big Week With Fed, Earnings

Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

DaVita Inc. stock falls Monday, still outperforms market

POPULAR POSTS

Marcus & Millichap (NYSE:MMI) Trading Down 6.3% on Analyst Downgrade

Orchestra BioMed Down Almost 17% on Second Day of Nasdaq Trading

Workhorse Group Inc. stock falls Monday, underperforms market

© Copyright 2021 RottenTomatoStocks. All Rights Reserved 

Disclaimer | Privacy Policy

No Result
View All Result
  • HOME
  • NEWS
  • NYSE
  • NASDAQ
  • OTC
  • TSX

© 2021 RottenTomatoStocks.com

error: Content is protected !!
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.