With the demand for home improvement projects increasing within the last two years, the call for new construction jobs has increased as well. While construction jobs bring in revenue, there has been a noticeable change in the industry — building material prices have skyrocketed, with construction businesses receiving the brunt of the impact.
A National Material Shortage Continues to Increase Prices
Why has the price of building materials gone up? In the last year, the demand for construction materials saw a significant increase. With many contractors and homeowners buying materials, stores have had trouble keeping supplies in stock. This issue was compounded by the global supply chain taking a hit from the COVID-19 pandemic, causing a delay in supplies arriving at stores.
Due to the shortage of various construction supplies, the price of building materials has gone up. For instance, the cost of lumber increased drastically throughout the year due to high demand and limited sawmill production stemming from labor shortages.
The Reality of Available Work and Project Demand
While it may seem like there is a lot of demand for work, construction workers are continually looking for projects. With the material shortage and spike in prices, many jobs continue to be pushed back. Construction teams need people to finance the materials for projects, but the high prices are a deterrent. Many people who had construction work lined up before the pandemic and want to continue with it had based their budget on old numbers.
While a project may have had a set budget in 2019, continuing the work in 2021 will likely require substantial adjustment to account for the material price increase. Consequently, customers may not be willing or able to finance the project in light of the increased expense.
How Contractors are Adjusting to the Newest Price Points
Although construction material prices have risen, contractors are continuing to search for ways to lower the cost for clients. Some ways contractors are offsetting material prices include:
- Trying new materials
- Shortening project schedules
- Adding escalation clauses to contracts
- Reducing bid times
- Upfront planning with clients
Contractors want to provide the best products and services for their clients. Many are doing their best to find ways they can make their construction projects affordable and keep everyone satisfied.
Begin Your Safety and Hazardous Materials Training
If you plan to enter the construction industry, it’s vital to have the proper knowledge and training to work with different construction materials, including those that could be hazardous. You can take various safety training, hazardous materials and waste management courses at Hazmat School. When you complete our courses, you’ll receive training certifications in compliance with OSHA, DOT and EPA requirements. To start your education, contact us today!