Construction Material Pricing

A recent article shared in Construction Dive contained some great information we wanted to share. Just when it seems like we are all exhausted with pricing news, more comes available that pulls us right back in. The article features five charts that give some indication of the state of construction today, and where it might head. Take the time to read it  ̶  it’s worth it  ̶  then take a look at our commentary below. 

https://www.constructiondive.com/news/5-charts-hint-at-whats-in-store-construction-economy-2023/638059/

From our standpoint, we are seeing the following on these issues:

1. Architectural Billings - Our design partners are still quite busy in certain areas and sectors, particularly multifamily, yet we do know firms that have already incurred staff reductions. This is an index we watch closely.
2. Construction Backlog - We have had a record backlog in 2022 like many contractors, and talk of our trade partners becoming more available hasn’t come yet - Especially the specialty trade...
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Have you found yourself saying “It’s just not like it used to be”? I hear this a lot lately and if I am being honest, I have said it a couple of times myself. It seems like challenges just keep on coming. First, we had the Covid lockdowns, then the lumber shortage, now inflation, and as I write this we are on the brink of the next crisis…the rail line strikes. One thing is for sure, it’s NOT how it used to be.

But that is why I love construction. It’s never the same. If I wanted to do the same thing day in and day out I would find another occupation. New challenges are what make us grow and the ones who can adapt are the ones who will succeed.

No two projects are alike. It doesn’t matter if it’s senior living, multifamily, or commercial construction. It doesn’t even matter if...

Developers understand the many reasons construction projects get delayed. Financial challenges can bring a project to a standstill in the face of interest rate increases and material and equipment price volatility. There is also the ongoing challenge of finding sufficient manpower to get the job done and the weather is a factor here in the Midwest.

In the current economic environment, you may consider delaying your construction project. But before you make that decision, consider the compelling reasons to forge ahead. Being a developer is always risky and challenging. With the volatility affecting the industry today, it is important for developers to thoughtfully proceed, as opposed to delaying projects. Some perceived challenges can actually present opportunities.

Longer lead times can provide greater flexibility, which enables you to source building materials at the best possible cost. Lead times for many construction materials remain longer than normal, so think months versus weeks. Lead times...

It has been 60 days since Hurricane Ian hit Southwest Florida and left its path of destruction across the state. Ongoing surveys estimate that 20,000 homes in Lee County (Fort Myers) have been destroyed with another 2,500 in Collier County (Naples). The City of Fort Myers alone estimates their storm damage to be $600M!  Lee County has reported they have reached the milestone of 1 million cubic yards of debris removed and estimates another 3 million cubic yards of debris remains. The magnitude of these numbers is staggering and doesn’t include any after-effects from elsewhere in the state. 

The observed short-term impacts on the Florida construction market have ranged from labor and materials becoming more readily available as those resources have been diverted from stalled or destroyed construction projects to the exact opposite, a disruption in labor and materials originating from Southwest Florida. 

The question most directed to us is what will be the hurricane's...