insteel industries inc on thursday reported an 82 decrease in thirdquarter shipments driven by lower activity in the companys standard welded wire reinforcement product line together with curtailed operating hours at certain facilities related to staffing challenges but logged a rise in sales to 2272 million from 1607 million a year earlier ho woltz iii the companys president and chief executive said that during the third quarter the company began to experience softening conditions in the market for standard welded wire reinforcement which is our most commodity like product line and is the companys only product line that is sold through distribution channels rather than directly to end users he said demand for the product is driven by new home construction to a greater degree than other products during q3 we believe slowing new home construction together with distribution channels that had recovered from supply shortfalls caused customers to more tightly manage inventories thereby unfavorably affecting our production and shipments significantly we have not detected similar trends in our other markets where backlogs remain extended and customer optimism is nearly unprecedented he said mr woltz said our markets remain robust and economic indicators for nonresidential construction activity along with internal customer and market insights point to continued momentum through the balance of the calendar year insteel said the third quarter saw a 54 increase in average selling prices the average selling price increase was the result of price increases implemented across all product lines to recover rapidly escalating costs the company said mr woltz said the company is increasingly contending with unusually tight labor markets that have prevented full capacity operating schedules at certain facilities we have responded to this challenge with innovative work schedules and higher pay levels which we believe will support the ramp up in production we expect through the end of the calendar year longer term our capital investment plan should reduce our labor intensity and operating costs together with supporting other strategic and commercial objectives he said