Since March 2020, nothing has remained the same. COVID-19 drastically changed multiple industries – from retail and food to manufacturing and transportation. One industry that has been severely impacted since March 2020 is the construction industry. In 2022, multiple aspects of the construction industry remain impacted, including material costs. Here’s why:
The cost of natural gas has risen astronomically over the last year, disrupting several markets. Although demand for natural gas was low in 2020, the need globally for natural gas has increased over the past two years. Not only do people need natural gas to drive their personal vehicles, but also vehicles that transport building materials need natural gas. The higher the gas prices are, the more expensive it is to transport building materials, and therefore the higher the building material costs.
Although most factories, shipping companies, ports, warehouses, and processing plants have come back online since 2020, they don’t have enough workers to meet the demand for building materials. Since these industries don’t have enough workers to meet demand, their production has slowed down. Fewer materials being produced means a higher price tag.
Demand for Building Materials Keep Rising
There has been a significant increase in demand for building materials. Homeowners are doing more home improvement projects – whether that be painting a room in the house, adding a deck to the home’s exterior, or adding an entirely new room to their home. More home renovation projects mean an increased demand for building materials, and higher demand means more expensive building materials.
A Global Shortage of Shipping Containers
Growing demand for a variety of goods combined with a limited number of port workers around the world has resulted in a shortage of shipping containers. Shipping containers are essential for global trade growth, and without them, we see a variety of problems. A global shortage of shipping containers means that building materials are not able to be imported and therefore increase their cost.
Dragon Scale Has Got You Covered
Labor shortages, shipping delays, and halted production have all made the cost of building materials unpredictable. But working with a reliable, experienced design-build company like Dragon Scale can help with your home renovation project without the confusion that the pandemic has caused. Although it’s impossible to avoid shipping delays or cut costs entirely, we’ll ensure that we do everything we can to have your project completed on time and at a reasonable price.
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