PRODUCT AVAILABILITY FOR Q3-Q4 2021
In these unprecedented times, supply chains have been affected by the availability of materials and labor shortages. Unfortunately, Trex and other manufacturers that produce third party products used with Trex fencing have not been immune to these issues. At the same time, economic conditions have created a housing boom which has brought a surge in demand for building products, pushing costs higher for materials and labor. This has put additional pressure on Trex to increase output while also dealing with production constraints and rising prices.
Due to the current conditions, Trex and FDS are implementing the following actions:
- A price increase on all product will be implemented starting October 1, 2021. Any product we do not have in inventory will be sold at the updated price.
- Current inventory on all components is very low with most components completely out of stock. New product will start arriving at the end of Q4 2021.
- Lead times vary. Production is anticipated to take on a regular format at the beginning of 2022. However, product allocation will impact our ability to fulfill orders, so lead times may continue to run longer than normal in 2022.
- Production of the Horizons frame system is suspended immediately. No horizontal fencing will be available for the foreseeable future due to supply chain issues.
- Requests for large or truckload orders will be evaluated on a case-by-case basis to determine if they can be fulfilled. No orders of any size will receive preferential pricing.
CURRENT STATE OF INVENTORY (UPDATED 8/30/2021)
Seclusions in 6’ tall Saddle is the only item we have in inventory in sufficient quantities to process orders. However, demand has forced us to operate with product on allocation. This means all requests for Saddle 6’ tall fence will need to be evaluated in our daily inventory meetings to determine if the orders can be fulfilled. To ensure clients have fair access to the product, no large orders will be fulfilled with existing inventory.
Seclusions in 8’ tall Saddle and both heights of Winchester Grey and Woodland Brown are on backorder. New product will be replenished starting late Q4 2021.
Until October 1st, projects already issued with signed orders and payment in place will be honored at the current price as long as we have inventory in stock or in the next set of truckloads.
FACTORS THAT LED TO THE ADJUSTMENT IN PRODUCTION SCHEDULES AND PRICING
Trex anticipated a big year to a large extent because of pent up demand due to the impact of the pandemic and put in place measures to increase production. However, the company has already maxed out capacity which has led to longer lead times. In normal conditions, product is typically available within 2-4 weeks because we carry large inventory levels and place regular factory orders for replenishment. However, the Trex factory that produces fencing is currently running 12+ week lead times, with some components taking even longer to get to our distribution center.
Additionally, materials such as steel and aluminum products, and pallets, banding and packaging have also been impacted by supply chain and labor force disruptions which have affected schedules and prices. The production of FDS-exclusive Horizons frame system has experienced even longer delays than Trex in some cases because of market availability of sheet steel. The volatility of pricing and availability have lead to the decision to suspend the production of Horizons for the foreseeable future to ensure we can maximize inventory and service demand for Seclusions.
TREX AND FDS COMMITMENT TO THE ONGOING SUCCESS OF THE FENCING LINE
Trex and FDS are adjusting to the current environment now to reduce ongoing availability issues and minimize the disruption as much as possible. Additionally, prices on fencing have not raised since 2017, therefore, it is necessary to adjust them to account for increases on average shipping costs, packaging and other factors.
FDS Fence Distributors, Trex’s national supplier partner, is fulfilling purchases in the order in which they enter our queue. Our current backlog is being managed with additional staff and expanded logistics. We typically turn orders around within 2-4 weeks from receipt of product from the factory.
We are continuing to commit to rapid order fulfillment as product is released. We appreciate your patience. Please feel free to contact us if you need any additional information.