COUNCIL FEARS PRICE INCREASE IN FIBERGLASS INSULATION

by Robert W. Crandall on June 14, 1977
by Robert W. Crandall

The Council on Wage and Price Stability fears that passage of legislation granting tax credits to encourage home insulation would place added pressure on an already tight supply of fiberglass insulation manufacturing for the next 18 months, unless the program is phased in gradually.

This concerning is expressed in a study released by the Council today. It is the view of the Council that production of fiberglass insulation could not be increased enough to meet rising demand in the next year if the legislation is approved without provisions to prevent production bottlenecks. There are few satisfactory substitutes for fiber glass in home insulation. Thus, the result would be that the chief beneficiaries of the tax credit this year would be manufacturers of fiberglass insulation. The Council has no quarrel with the idea that encouraging home insulation is necessary for the conservation of energy. Its concern is only in avoiding sudden price pressures in an industry already operating close to capacity.

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