Q:

What factors influence the cost of Hardie board siding?

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Quick Answer

Factors that influence the cost of Hardie board siding include transportation expenses, production overheads, availability of raw materials and the market price of alternative products. Hardie siding is made from calcium silicate and crystalline silica, derived from limestone and quartz respectively, so the costs of mining these materials is significant.

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Full Answer

James Hardie Incorporated conduct manufacturing operations in United States, Australia, New Zealand and the Philippines. The cost of transporting raw materials to manufacturing plants and getting the finished products to the international marketplace must be absorbed into the price. The fluctuating value of crude oil affects surface freight costs around the world.

Production overheads encountered by Hardie are affected by factors like local industrial labor cost, power supply charges and the need to keep technologically up-to-date to stay competitive. A change in any one of these areas may be reflected in the pricing structure of siding planks.

The geological locations and productivity of limestone and quartz mines directly affect the value of raw materials used in Hardie siding. No mining source is infinite, so new mines must be built when old sources are depleted. Associated costs are factored into the price of materials.

Finally, like any commercial commodity, the price of fiber-cement is dependant on its market. Phases of economic growth affecting the construction industry or shifts in building trends ultimately influence the cost of Hardie board siding.

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