Content and Public Relations Manager Andy Holtmann says, “Like the labor challenge, rising material costs and supply chain issues have had a crippling effect on the construction industry. Hopefully, governmental measures will help, though ultimately, many of these cost and supply issues are tied to the pandemic itself…”
“Look, part of what is happening isn’t just the supply side, it’s the demand side,” said Secretary of Transportation Pete Buttigieg. “Demand is off the charts.”
“It’s the only thing contractors talk about anymore,” says IndustryDive.com.
“It” is the current construction industry challenge to carry on better-business-than-usual with less than ever. We’re facing unforeseen materials shortages and the materials themselves are very slow in arriving.
Construction Industry Supply, Demand, Costs Likely To Continue in 2022
What’s in those cargo ships at-anchor off the West Coast? Christmas decorations and industrial supplies. Office furniture and equipment. Air filters, filtration and ventilation systems. And much, much more.
Despite the Biden Administration’s efforts to unclog shipping backlogs and ease supply chain issues, Buttigieg says the construction industry’s problems today probably won’t see resolution anytime soon. He says passing the controversial $3.5 trillion infrastructure bill would help.
What’s hard-to-get and breaking our budgets? Steel mill products have risen 123% in costs. Lumber prices began lowering and then rocketed up again in October 2021. “Here we go again,” said Fortune magazine’s Lance Lambert.
Cost increases include:
- Brass, copper 43.3%
- Lumber 40%
- Plastics 29%
Shortages and delivery delays include:
- Electrical equipment/components
- PVC pipes
And while input costs to construction rose 28% from April 2020 to August 2021, bid prices only rose 5% over the same period. Construction industry contractors are absorbing the costs.
In July 2021, we shared ways to better manage materials tracking. Now more than ever, construction industry information resources are critical to your business. Construction Monitor wants to be one of those resources because increasing your business is our business.