PVC Pipe at the Ten Mile Creek Job Site, Idaho, 2020
There have been a lot of curveballs the past year and a half as we’ve all navigated the COVID-19 pandemic. One of the most surprising changes has been the lingering effect on the construction industry.
We’ve all watched in awe as the price of lumber rose to historic heights, fell, and now is rising slowly again. But lumber isn’t the only commodity that’s been affected by the economic consequences of COVID-19. Nearly every type of construction material has experienced some change. For example, the material costs to build a single-family home have increased 26.1%! Here’s a closer look at the top three changes we’ve seen:
- Pricing: Prices are going up for nearly everything. We saw lumber prices reach double their 2019 price, and lumber futures were trading at 84.7% higher than last year. But lumber’s not the only material affected. Copper wiring prices increased 40%, drywall increased 16%, water heaters increased 15%, and many other materials and supplies increased as well.
- Supply: Supply chain issues have been a huge headache this past year. Border closures, factory shutdowns, and even a transport ship getting stuck in a canal half a world way have severely disrupted the supply chain. We’ve especially seen the effects when it comes to sourcing PVC piping. PVC piping is sourced from petroleum, and the winter storms that plagued Texas earlier this year caused the price to jump.
- Ordering: All of these supply chain disruptions have affected the timelines for many different projects. Many of the materials needed to complete a project now take weeks or longer to order and arrive at the job site than before. Plumbing fixtures can take up to sixteen weeks from order to arrive at the job site. The long wait times have led many project managers, designers, and contractors to begin ordering supplies weeks or even months ahead of time.
All of these changes can be difficult to manage. That’s why we are so grateful for the inventory management system we’ve put in place. Our team has a strict system to minimize waste or damage to supplies as we’re working. This system served us well before the pandemic, and now as supplies are getting scarce and more expensive, it’s helping us maintain quality for our clients.
We’ve seen price changes and supply changes before, and even though things are a little crazy right now, we know we have the skills and discipline to manage this rocky time. The core values that guide our company help us plan ahead, stay on track with deadlines, and manage our team and supplies to deliver great results for our clients!
