Another war, another continent, and heartbreaking challenges to populations in both countries. While the Kremlin tries to hide the reality of its actions from Russians, it can’t hide the solid blow its economy has suffered. The casualty count in Ukraine continues to rise. Here in the United States, construction business owners brace themselves for the fallout: a “triple threat” of materials shortages, supply chain tangles, and inflationary prices.
U.S. Construction Business Fears War-Related Issues
You’ve made it through the pandemic, and your business has stabilized. Can you relax? The war will negatively impact most companies, and others will flatline.
“With so many things going on in the world and with the economy right now, more businesses than ever are going to enter the flatline,” says entrepreneur and CEO Ben Walker via Forbes. If your construction business flatlines, you have only two ways to go: grow or decline. “…Many will decline. A few will never open their doors again,” adds Walker.
Russia is one of the largest producers of copper and aluminum. These metals’ material prices went high in January. Now, they will likely go higher.
It was 1987 when we first began analyzing construction industry data, like input prices. Input prices consider all costs involved in the production of goods or services. We are seeing the biggest surge in input prices since data collection was recorded.
Another construction industry sector – architecture – is already flatlining. Post-COVID architectural billings were on a slow but steady upswing. While there was visible growth, primarily in Southern states, where the index hit 56%, now it “has languished around 51” for three months, says Construction Dive.
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