Be Wary of Long-term Contracts

Tom Dyson, in The Daily Wealth Newsletter, recently predicted a rise in building-materials prices. He based this viewpoint on his conversation with the GM of a large, Florida-based lumberyard, who said several of his suppliers had recently raised their lumber prices, and that others will follow.
The impetus behind the increases? Inflation, of course, but it’s also because of shortages — many building-material manufacturers have reduced production, inventory and staff; some have closed their doors.
Reedconstructiononline.com writers say construction-material suppliers are shipping 20% less product than two years ago. It says the falling dollar, inflation, and economic growth in other countries will spike imported materials prices.
Shipping news sources say overseas shipping rates have increased as much as 40% in some areas. They predict even more hikes.
Dyson’s GM warns of price increases and future material shortages; he advises contractors and builders to be wary when entering long-term contracts.