As we know, there have been intense supply chain shortages in almost every industry worldwide causing delays and affecting product availability.
Naturally, we know that the supply chain problems that the world is facing have affected every industry. Construction is no stranger to supply problems but with multiple factors to take into consideration, the several circumstances that are swirling around the global economy are causing price increases and product scarcity. According to the National Association of Homebuilders (NAHB), out of all the builders in the United States, 90% of them reported material shortages or delays in deliveries in 2021.
This past year, we have witnessed several factors that are causing shortage and cost challenges in the construction industry. Unfortunately, when there are signs of product scarcity, builders and contractors will invest in large quantities of material to pad themselves from the eventual unavailability. What this can do, is drive the cost up for material and remove it from their supplier’s stock. In the long run, this can be damaging to the home improvement economy and in turn passing on these higher prices when it comes to the sale or rent of a property; expensive materials mean expensive homes.
Another factor that comes into play is port congestion and supply container shortages. If materials are unable to be exported from their origin country to their destination, the movement of products will be slowed down exponentially. This is especially exacerbated if there isn’t a workforce at these facilities to ensure the shipment’s timely departure. This puts insurmountable pressure on global imports and exports and further complicates lead times.
Even once the material arrives at its destination, the increased intensity of storms and hurricanes in the southern United States has impacted storage facilities and delivery routes. So, not only is it taking extended periods to import the material but to then distribute it to its intended destination.