As we navigate 2025, Canadians are facing an increasingly complex economic landscape. Alongside the ongoing adjustments following the pandemic, rising political uncertainty in the U.S. is adding new layers of unpredictability, including the looming possibility of trade tariffs.

Now more than ever, it's essential to support businesses that contribute directly and sustainably to our national economy.

At Morin Supply, we are proud to be a locally owned and independent Canadian business. As a member of TIMBER MART — Canada’s largest member-owned buying group — we prioritize working with manufacturers that invest in Canada’s long-term economic health.

Over the past few years, the Canadian building materials industry has seen major changes. U.S.-based companies have acquired significant portions of Canadian distribution, thereby relocating decision-making and profits outside the country.

Since 2020, two prominent local distributors — one specializing in interior systems materials and the other in roofing materials — have been acquired by U.S. firms.

At the same time, many building product manufacturers operating in Canada are now owned by global companies headquartered in the European Union. Key players include Rockwool, CertainTeed (a subsidiary of Saint-Gobain), and CGC (a subsidiary of Knauf).

Unlike U.S. distributors, these EU-headquartered manufacturers have a track record of actively reinvesting in Canada by building local facilities and creating high-quality jobs.

A prime example of this commitment is Saint-Gobain, a French multinational that owns several key Canadian subsidiaries, including CertainTeed Interior Product Group (drywall, insulation, ceilings) and Bailey Metal Products.

Since 2022, Saint-Gobain has invested over $3 billion in Canadian manufacturing. One major project is the $130 million+ rebuild and electrification of CertainTeed's Montreal gypsum plant. This facility will become North America’s first Net-Zero gypsum plant and only the second of its kind in the world.

These are the kinds of partners Morin Supply chooses to work with — companies committed to meaningful, long-term investment in Canada.

“Our manufacturers are carefully selected — it’s about who’s truly invested here in our business and our clients. We want our customers to feel confident knowing they’re supporting companies that are building jobs, facilities, and a future in Canada.”

— Yanik Morin, President, Morin Supply

Although many manufacturers operate production facilities in Canada, a significant portion of raw materials and indirect costs still originate from the U.S. EU-headquartered manufacturers can leverage their broader European networks to mitigate some tariff costs. However, this strategy comes with additional expenses and requires time for supply chains to adjust. Stabilization could take anywhere from 3 months to 2 years, depending on the situation.

While we anticipate some price increases due to political pressures, it remains uncertain whether these changes will push building materials prices beyond the typical annual adjustments.

The demand for gypsum and insulation products remains strong, and supply allocations continue across the industry. Manufacturing facilities are struggling to keep up with this sustained demand. Here are a few key factors contributing to these challenges:

• Capacity limitations: Canadian manufacturing facilities alone cannot meet total market demand, so manufacturers are relying on U.S. plants to fill the gap.

• Raw material challenges: The ongoing closure of coal plants in the U.S. has reduced the availability of FGD (Flue-Gas Desulfurization) Gypsum. Manufacturers must now source more expensive natural gypsum.

• Cardboard supply issues: Gypsum panel production is heavily reliant on heavy paper produced by cardboard manufacturers. With companies like Amazon increasing demand for cardboard, mills are raising prices — adding further pressure to gypsum manufacturing costs.

As we navigate the challenges ahead, we remain steadfast in our commitment to supporting our industry, our economy, and our customers. We will continue to prioritize the supply of high-quality, Canadian-invested products to help build a stronger, more sustainable future.