The price of lumber for new-home construction is going “through the roof,” so to speak. But construction industry contractors that were thinking metal-insulated panels on that roof might be cheaper are thinking twice. Prices of lumber and steel saw as much as a 25% increase in February 2021.
Within the construction industry, single-family housing starts are up as are demands for residential renovations. They are seemingly pandemic-driven by stay-at-homeowners that would have used disposable income for travel and group activities. Low-interest rates are another factor, so contractors are being encouraged to pay more – and charge more – for construction.
Pandemic Continues To Affect Steel and Lumber Mills
U.S. mills rode out the pandemic with layoffs and short-shifts. Social distancing requirements called for creative ways to keep workers working. Meanwhile, they let their inventory drop because this time last year, supply exceeded demand.
The steel supply shortage may be short-lived and Boyd Metals believes the pricing will level out. Production was scaled down in 2020 and it will take some time to “fill the pipeline” to meet the increasing demand. But it will happen.
In January 2021, the construction industry began demanding more lumber and it wasn’t available. “The problem is particularly acute in the remodeling business because the pandemic has caused so many people to want to add additional space, especially outside. Contractors and design firms are caught in the middle,” says CNBC.
When the Going Gets Tough, the Tough Contractors Develop Solutions
Materials that cost more than plywood last year are now looking cost-effective. Without compromising quality or durability, construction industry contractors always find workarounds for challenges. “Be sure to deal with reputable and knowledgeable suppliers,” says Valve Magazine, especially as you seek alternatives to metals.
Exploring new business opportunities and aligning yourself with construction industry leaders is another way to develop solutions. Construction Monitor can help. Our presorted data can ensure you’re the go-to for your area’s construction opportunities.