The construction industry has been under pressure since early 2020, due to the COVID-19 pandemic. Demand for construction materials has increased dramatically during the pandemic due to manufacturing shutdowns, low staffing, and other factors. Even the great resignation has reached the construction industry. This has impacted construction timelines. Construction materials are not just more costly but have a higher delivery time. Contractors, subcontractors, and suppliers are facing the same issues.
How the Pandemic has Affected the Cost of Raw Materials
The National Association of Home Builders (NAHB) reports that lumber prices have basically tripled, causing the cost of a single-family home to increase by $18,600. If this is how lumber prices are affecting the residential market, just imagine the effect it is having on the commercial market.
Not only has the pandemic led to skyrocketing metal prices, but so has Russia’s invasion of Ukraine. This conflict has not helped with lowering the cost of materials. With fewer suppliers, the steel market is experiencing high prices globally because demand is higher than ever.
The Great Resignation and the Construction Industry
Globally, employees have voluntarily quit their jobs due to the ongoing Covid-19 pandemic, which has spearheaded what is known as the “Great Resignation.”
According to the U.S. Bureau of Labor Statistics, the quit rate for the construction industry is 3.2% as of March 2022. Which is the highest it has been in 2022 so far. Which is just above the all-industry average of 3%.
How the Construction Industry has Adapted
The industry has had to adapt to considerable obstacles and develop solutions for each project. These solutions are intended to reduce pandemic-related delays and other consequences. You can learn more about what Little Dixie Construction is doing to combat these challenges and the steps we take to make sure our projects stay on track by reading our other blog.