The war in Ukraine, global port congestion, and the persistent spread of COVID variants will conspire to raise prices on equipment and key building products by 7-9 percent this year, according to the general contractor Consigli’s latest market update, which it released a few days ago. Shipping and labor put pressure on building product prices.
The good news: the cargo and transportation snags that have encumbered building material availability this year showed signs of finally easing in September.
The bad news: the lack of material supply and increasing demand for labor are keeping prices high, to the point where manufacturers aren’t willing to hold price quotes for more than a week, if at all. More delays and price hikes are in construction's immediate future, says new Outlet
Dive Brief:
Construction vendors and subcontractors are relying on technology and offsite fabrication to help work around material shortages and other challenges brought on by the COVID-19 pandemic, according to a new market outlook from Consigli.
The Boston-based firm found that the pandemic has motivated subcontractors and vendors to implement technological advancements into their shop and field processes. Cost saving material management software, tool upgrades and robotics are improving efficiencies which is allowing subcontractors the flexibility in managing on-site workforce restrictions, says the report, which is based on a survey of the company s partners in the markets where it operates, from New England to the Mid-Atlantic.