A recent survey of more than 200 subcontractors and suppliers in the Northeast found that respondents have been prefabricating 20% more than they did prior to the COVID-19 pandemic. And 71% said that they had seen an increase in requests for design-assist proposals, a strong sign that speed-to-market is a priority.
Consigli Construction’s Market Outlook Report for the first and second quarters of 2021 states that the pandemic has motivated subs and vendors to turn to technology in their shops and field processes. The survey’s respondents are also more receptive to cost-saving material management software, tool upgrades, and robotics that improve efficiency and give subs the flexibility they need to manage on-site workforces at a time when skilled labor is in short supply in some markets.
While 72% of the survey’s respondents say they aren’t concerned about staffing their projects this year, Consigli suggests they need to monitor their workforce resources for 2022, based on the amount of work in the pipeline.
PRICING AND SUPPLY ARE ISSUES FOR SEVERAL PRODUCT
The Market Outlook expects copper and steel to manifest the greatest risk for price inflation. Chart: Consigli Construction
The Market Outlook Report also looks at materials price inflation in several product categories (see chart). Metal studs, copper, and PVC are the materials that the report expects to show the greatest price increases in the first half of the year. The report also suggests that lumber—whose pricing had jumped by 73% since February 2020—could be stabilizing, depending on residential demand.
(The Commerce Department reported last week that housing starts had surged to a nearly 15-year high in March.)
Consigli recommends that subs keep a close eye on high-risk materials, and lock in prices as soon as possible to avoid exposure to inflation. Subs should also watch for supply-chain disruptions, especially for products coming from overseas like flooring and cabinetry. Where possible, have access to alternate materials and delivery options.
Related Stories
Market Data | Nov 15, 2022
Construction demand will be a double-edged sword in 2023
Skanska’s latest forecast sees shorter lead times and receding inflation, but the industry isn’t out of the woods yet.
Reconstruction & Renovation | Nov 8, 2022
Renovation work outpaces new construction for first time in two decades
Renovations of older buildings in U.S. cities recently hit a record high as reflected in architecture firm billings, according to the American Institute of Architects (AIA).
Market Data | Nov 3, 2022
Building material prices have become the calm in America’s economic storm
Linesight’s latest quarterly report predicts stability (mostly) through the first half of 2023
Building Team | Nov 1, 2022
Nonresidential construction spending increases slightly in September, says ABC
National nonresidential construction spending was up by 0.5% in September, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Hotel Facilities | Oct 31, 2022
These three hoteliers make up two-thirds of all new hotel development in the U.S.
With a combined 3,523 projects and 400,490 rooms in the pipeline, Marriott, Hilton, and InterContinental dominate the U.S. hotel construction sector.
Codes and Standards | Oct 26, 2022
‘Landmark study’ offers key recommendations for design-build delivery
The ACEC Research Institute and the University of Colorado Boulder released what the White House called a “landmark study” on the design-build delivery method.
Building Team | Oct 26, 2022
The U.S. hotel construction pipeline shows positive growth year-over-year at Q3 2022 close
According to the third quarter Construction Pipeline Trend Report for the United States from Lodging Econometrics (LE), the U.S. construction pipeline stands at 5,317 projects/629,489 rooms, up 10% by projects and 6% rooms Year-Over-Year (YOY).
Designers | Oct 19, 2022
Architecture Billings Index moderates but remains healthy
For the twentieth consecutive month architecture firms reported increasing demand for design services in September, according to a new report today from The American Institute of Architects (AIA).
Market Data | Oct 17, 2022
Calling all AEC professionals! BD+C editors need your expertise for our 2023 market forecast survey
The BD+C editorial team needs your help with an important research project. We are conducting research to understand the current state of the U.S. design and construction industry.
Market Data | Oct 14, 2022
ABC’s Construction Backlog Indicator Jumps in September; Contractor Confidence Remains Steady
Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to 9.0 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 5.