Market Update

May 2026

Lead Times and Escalations

We stay ahead of market trends, continuously monitoring economic and industry dynamics to anticipate challenges, manage risks, and offer clients timely, data-driven insights for smarter decision-making. Below is a summary of our most recent market observations and key findings.

Metals
Electrical
Mechanical
Appliances

Cabinets & Countertops
Commercial Furniture
Floor Covering
Windows

Metals

Trends

Pricing has been taking increases with demand picking up. This is expected to continue through Q4 this year.
Demand has picked up as expected after a slower 2025. Pricing will continue to go up and distributors are saying they have no expectation for demand to go down. Steel mills are booking out the summer but distributor inventory levels are beginning to decrease.
In house freight is booking out due the demand increases and added fuel costs.

Pricing

STABLE 0-3%

Lead Time

UP 3%+

US Midwest Domestic Hot-Rolled Coil Steel Futures Per Ton - (HRCc1)

Electrical

Trends

An industry group has forecasted that the country’s refined copper output will likely rise by about 5% this year following a 10% increase last year.
The electrical equipment industry forecasts a moderate, yet volatile, supply outlook for the upcoming quarter, with specialized, high-demand components facing shortages while general manufacturing ramps up to meet rising grid demand. Key trends indicate tight supply for capacitors and advanced, AI-linked semiconductor products, with lead times stretching over 20 weeks.
While demand for specific high-performance sectors like data centers and infrastructure remains strong, overall manufacturing activity is expected to see a slight contraction, potentially leading to softer demand for standard industrial and commercial fixtures.

Lighting Lead Times

Type	Timeframe (in weeks)	Status
Typical Lighting Controls	6-8	Holding
Site Poles	10-14	Holding
Site Heads	8-10	Holding
Non Stock Light Fixtures	8-10	Holding
Typical Light Fixtures	4-6	Holding

Power Generation Lead Times

Type	Timeframe (in weeks)	Status
Panel Boards	3-20	Holding
Distribution Panels	20-48	Declining
Switchboards	12-48	Declining
Metering	3-16	Holding
MV Transformers	45-60*	Holding
Low Voltage	2-4**	Holding
Generators	22-90**	Improving
<600kWˆ	30-35	Holding
>600kWˆ	45-90	Improving
Standard Transfer Switches	13-15	Improving
Custom Transfer Switches	24-50	Holding

Mechanical

Trends

While residential inventory is normalized, high-efficiency equipment, particularly in commercial heat pumps, remains in strong demand due to new efficiency regulations.
Manufacturers are focusing on expanding production capacity and leveraging localized sourcing to overcome previous supply chain disruptions and meet the rising demand for high-efficiency, multi-fuel, and low-emission boilers.
Based on 2025 and early 2026 reports, the HVAC industry is facing continued, significant upward pressure on costs due to tariffs, which are expected to drive a 5–10% increase in HVAC system prices in 2026 on top of substantial increases in 2025. These tariffs affect both fully assembled imported units and critical components like compressors, semiconductors, and control boards.

HVAC Lead Times

Type	Timeframe (in weeks)	Status
VTAC	9-11	Holding
VRF	2-4	Holding
DOAS	8-10	Improving
Standard Split Systems	2-4	Holding
RTU’s	10-15*	Improving
Standard Boilers	6-8	Improving
Custom Boilers	16-20	Holding
Cooling Towers	14-18	Holding
Chilled Beams	6-8	Holding
Standard AHU’s	14-16**	Declining
Custom AHU’s	18-26*	Declining
Chillers	14-24	Improving
Fan Coil	9-11	Declining

Appliances

Trends

Tariff costs are no longer being able to be absorbed. Larger appliances with more steel, like fridges, are being impacted due to the tariffs on the steel itself.
Anywhere from 5%-12% starting around mid-June. Depends on the appliance and where it's being made.
Continues to be built into the pricing of the appliance and not directly affected.

Pricing

UP 3%+

Lead Time

STABLE 0-3%

Cabinets & Countertops

Trends

Overseas countertops remain exposed to tariff impacts.
Cabinet price increases ranging from 2% - 3%.
Remodeling and multifamily housing demand is keeping cabinet/countertop volumes strong, with steady 2–4% cost increases projected into 2026.

Pricing

STABLE 0-3%

Lead Time

STABLE 0-3%

Cabinet Works Lead Times

Brand	Standard*	Extended*	Estimated*
Design-Craft	4	None	5-6
KraftMaid	3	None	4-6
MasterCraft	3	None	3-4
Masterpiece	3	None	4-6
Medallion Silverline	4	None	5-6
Medallion Gold, Platinum, Bath Silhouettes	4	None	5-6
Merillat Classic	2	None	3-4
Merillat Basics	2	None	3-4
QualityCabinets	2	None	3-4
QualityCabinets WoodStar	2	None	3-4
Serenade	4	None	5-6
Smart	3	None	3-4
Yorktowne Classic	4	None	5-6
Yorktowne Iconic, Historic, Bath Sanctuary	4	None	5-6

Commercial Furniture

Trends

Most manufacturers have instituted a price increase to include the surcharge in pricing but a few remain charging a 4%-5% surcharge/tariff as a separate line item.
Lead time is roughly 6-8 weeks for casegoods, 2-3 weeks for standard seating, and 10-12 weeks for powered panel systems/cubicles. Select quick-ship items are available to ship within 72 hours.
Freight is stable at this time.

Pricing

UP 3%+

Lead Time

STABLE 0-3%

Floor Covering

Trends

Projected 5% increase throughout spring and summer.
Tariff impacting import costs, while domestic production continues to increase.
Freight quotes are on the rise and fluctuate quickly.

Pricing

UP 3%+

Lead Time

STABLE 0-3%

Windows

Trends

April found Aluminum price went up 1% - anticipating 2-3% price increase.
Lead time is 12-14 weeks. Escalation expected 2-3% due raw material increase.
Freight went up due to gasoline price increases.

UP 3%+

STABLE 0-3%

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We hope you find this edition insightful and valuable. Thank you for trusting us. We look forward to continuing to provide you with timely and actionable updates. If you have questions regarding this information or need help with procurement, please contact us to start the conversation.