With the year-end holiday season approaching, we’ve begun experiencing historic seasonal reductions in our incoming order rates. However, forecasts for the kitchen market predict a continued high level of activity in 2022 with both housing starts and remodeling activity remaining strong. While order rates have begun to decline to a healthier and more sustainable level, the existing large backlogs must be produced before normal lead-times can return. This is not only the situation with Conestoga, but dozens of our suppliers and hundreds of customers have told us they are experiencing these same circumstances with continued longer lead-times not historically seen.

Although Conestoga is dealing with the aforementioned issues, we do have a bit of good news to report. Although our lead-times continue to be extended, we have routinely been hitting our acknowledged ship dates at a rate of over 98% for the past 3+ months. This on time/complete ship rate not only applies to doors and drawer fronts, but Cabinet Systems, drawer boxes, alternative material products and more. In fact, we have even been able to implement some minor lead-time reductions for nearly all products. That said, we still have a long way to go to return to our published lead-times.

The net result of the continued material and labor cost increases is that Conestoga will be passing along increases in several product categories. Effective January 17, 2022, the following categories will be adjusted in price : • Square foot pricing for wood and plywood doors and drawer fronts for all published species. • Alternative material door and drawer front design charges and material charges. • Front frame material charges. • Drawer box assembly and linear inch material charges.

Many other ancillary products such as paints and stains, interior storage items, legs, posts, feet, corbels, outlet covers, cut-to-size plywood and many others will increase effective January 31, 2022.

We’d also like to take this opportunity to once again clear up some misconceptions about hardwood lumber pricing in relation to Lumber Futures. Lumber Futures are primarily tied to home construction materials such as softwood lumber for framing houses and have little to do with hardwood lumber prices. While supply of hardwood lumber such as Cherry, Maple and Oak is adequate at this time, demand continues to be strong and while prices are stabilizing, there have been recent signs of slowing. However, wet weather in many parts of the country are prohibiting access to many forests, reducing the lumber harvest, so there is no indication that hardwood lumber prices will trend downward in the near future.