We’ve been getting a lot of calls regarding the possibility of material costs decreasing and therefore, potentially lowering previous 2020/2021 quoted projects. With so much content being spewed out on social media and the news, it can be difficult to find some true facts on this subject. As a member of the National Homebuilders Association (NAHB), we’ve been kept up-to-date on a weekly basis on current economical forecasts and trends.
Here just a few important facts shared through these construction channels to show why costs and pricing will continue to rise and to lock in the current rates as soon as possible for projects you’re on the fence about for the next couple of years.
- OSB prices are more than 500% higher than they were in January 2020. Supply shortages have exacerbated the issue.
- Higher material costs were a warning sign regarding inflation. Although the Fed (and, in part, the NAHB Economics team) see these inflation gains as transitory, CPI data saw a 5.4% gain in June — the rise in prices in 13 years!
- Resin shortages continue to effect composite supply chain. Resin is in almost all construction products (PVC, Hardie Siding, Trex & Azek Decking, etc.) as well as their packaging. In the past 5 months, resin costs have jumped almost 25%.
- With real estate so high, most homeowners are staying put and remodeling; therefore, leaving an unusually high demand of materials and labor. In fact, one of the largest roofing manufacturers in the world (GAF) has limited their color selections to only 3 colors.
- By the end of April 2021, job openings rose to an unprecedented 9.3 million, according to the Bureau of Labor Statistics. Not only do you have to be concerned about field crew labor shortages, but all the hands that touch the product before it gets to your home. Entire manufacturer plants, factory workers, suppliers, distributors, truck drivers, etc. and ALL of the equipment required to fulfill the demand are limited.
- Childcare/Senior Care complications have dramatically spiked since March 2020. People are keeping their autoimmune-compromised loved ones at home; and therefore, are unable to work. Some family caretakers can no longer help due to longterm effects of Covid. Many daycares have closed or remain understaffed.
Now is an ideal time to get on the schedule and invest in your exterior project by contacting us at Professional Building Services .