Calgary’s housing market has been highly competitive over the past few years, driven by increased demand, low interest rates, and limited inventory. Between 2020 and 2023, demand for homes spiked and the market saw active listings reach historic lows, with nearly 50% fewer homes available and many selling within a week. By mid-2024, however, the market began to stabilize as supply increased and sales slowed, bringing inventory to over two months for the first time since 2022.
Increased new home construction and more listings are helping to balance the housing market. “We saw a significant increase in housing demand in 2020 during the pandemic,” explains Scott Myer, COO for Integrity Group of Companies and business unit leader for Integrity Building Products. “And we are still feeling the impact of that demand. In response, our building partners increased construction volume and worked to quickly supply the market with more inventory. While the market is softening slightly now, the demand for new homes continues to be strong.”
This demand for new homes exacerbates any challenges within the building material supply chain, and these challenges impact home builder’s project timelines, budgets, and ability to meet the demand for new homes. For Integrity Building Products, understanding the urgency of these issues has shaped the approach to supply chain management.
Integrity Building Products’ Approach to Supply Chain Management
At Integrity Building Products, we take a proactive, strategic approach to supply chain management. “Our focus is on ensuring that our building partners receive a steady and reliable supply of the materials they need to keep their projects on track,” explains Scott. “Through our investments in proactive inventory management, strong supplier relationships, streamlined logistics, and an unwavering commitment to quality, we aim to support Calgary’s homebuilders in navigating the challenges of higher demand.”
Proactive Inventory Management
One of the key pillars of Integrity Building Products’ supply chain management is proactive inventory controls. “We recognize that in the current market, builders can’t afford delays or shortages of essential materials,” explains Brady Wilk, Supply Chain Manager. “That’s why we’ve implemented robust forecasting models to ensure that we’re consistently prepared to meet the demands of our customers, even in times of a hot market.”
To effectively manage inventory, our team works closely with building partners to develop clear project schedules. “Our Account Managers gather detailed timelines and project specifics, enabling our Supply Chain team to secure materials as needed,” explains Scott.
“With this information, combined with market research and housing trend insights, we can better forecast demand, maintain optimal stock levels, and prevent shortages,” adds Brady. “By tracking construction schedules, we adjust inventory to ensure builders have the materials they need on time. This proactive approach also supports discussions with suppliers, securing access to critical materials and keeping projects on track, even during unexpected demand spikes.”
Our diverse supplier network is another essential part of our strategy, reducing dependence on any single source. “This flexibility is crucial when certain materials become scarce, as we can pivot quickly to alternative solutions without compromising quality,” Brady concludes.
Building Strong Supplier Relationships
The strength of Integrity’s relationships with our suppliers is another cornerstone of the supply chain team’s strategy. “We believe that long-term, strategic partnerships with our suppliers are essential to maintaining a reliable flow of materials. This not only ensures that we can meet the immediate needs of our builder partners but also helps mitigate the risks associated with price volatility and material shortages,” explains Brady. “Our team regularly communicates with our suppliers, discussing forecasts, expected demand, and potential supply chain disruptions. This close collaboration allows us to make early adjustments and ensure that we can meet delivery schedules, even in times of market uncertainty.”
“Communication with our suppliers, and the relationship Brady and his purchasing team have built with our suppliers is key,” adds Scott. “These relationships help to ensure that builders in our market can continue their projects with minimal disruption, and they aren’t left waiting on critical materials.”
Streamlined Logistics
Efficient logistics ensures materials are delivered when and where they are needed. Integrity’s supply chain and logistics teams work closely together, investing in streamlining processes to reduce delivery times and improve customer satisfaction.
“We’ve optimized our delivery schedules and we track shipments in real-time, providing up-to-date information on delivery status and proactively addressing any potential delays before they become issues,” explains Drake Flynn, Logistics Manager.
Integrity Building Products also understands the importance of flexibility in the construction process. Builders in Calgary are often working within tight timelines, and any delays in material deliveries can result in costly project setbacks. “To mitigate this risk, we provide flexible delivery options that allow our customers to choose the most convenient times for their deliveries, minimizing downtime and ensuring their work sites stay on schedule,” adds Scott.
Coming Together with Calgary Builders: A Strong Partnership for Success
Integrity understands the challenges home builders in Calgary face during high-demand periods, and we are committed to being a reliable partner. Through our proactive inventory management, strong supplier relationships, and streamlined logistics we strive to support Calgary’s builders in their efforts to deliver homes on time, within budget, and to the highest standards of excellence.
High-demand periods may present significant challenges, but together, with strategic planning and collaboration, we can ensure that builders in Calgary are well-equipped to meet the demand for new homes.
