Inventory & Pricing Update

We are proud to provide the service and support you require to operate your properties in a safe and effective manner. As your supplier, we think it is important to share key trends we are observing in the current market around product cost and availability. The insights below are from the manufacturer partners we work with, as well as publicly available data on raw materials provided by the US Bureau of Labor Statistics from the Producer Price Index Detailed Report dated May 2021. This report can be found here.

  • • Cold Rolled Steel up 107% YOY - Used in Water Heaters, HVAC Equipment
  • • Polypropylene up 57% YOY - Used in Liners, PVC/CPVC Fittings, Plastics
  • • Copper up 58% since May 2020 - Used in Plumbing, Motors, Compressors

It is not just raw material pricing that is up. Crude petroleum is also up 185% since May 2020, which impacts energy and transportation costs. Transportation costs alone are up 7.3% from March 2020 to March 2021.

In addition, many of the products your business relies on are also impacted by manufacturing constraints. For example:

  • • Refrigerator inventory shortages are expected to continue into next year, driven by increased demand. We are sourcing additional private-brand options and inventory to help meet this challenge.
  • • Water heater supply is limited due to component and labor shortages. We have worked with our suppliers to secure large allocations to support your needs in Q3 and Q4.
  • • Severe pool chemical shortages are causing a spike in prices and reduced availability of alternate products. We expect these challenges to extend into 2022. We have secured market-leading allocations of liquid chlorine to act as an alternate pool sanitizer.

In order to keep your property stocked with the products you need, we recommend ordering ahead.

The good news is this: There is no other distributor better equipped to meet these challenges than HD Supply. Backed by the power of The Home Depot, we are working closely with our global network of suppliers to monitor market conditions, mitigate price increases, and secure the products you need. We also recognize that there may be unavoidable price increases or volatility in the market, and we are committed to communicating such updates as they materialize.

Please know our team of 12,000 Associates is fully committed to providing the products and services you need to safely operate your properties.

Regards,

Letter From Brad Paulsen, Chief Operating Officer, HD Supply

Brad Paulsen

Chief Operating Officer, HD Supply

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