Construction Industry Hit with Supply Shortage
The boom in the construction industry continues to grow, but it is running into some speed bumps with a supply shortage.
Homebuilders are facing new supply challenges across the nation. Especially those states that have a strong construction industry like Nevada, Arizona, and Texas.
The hot housing market is to blame and since it isn’t slowing down, it is starting to become a widespread issue.
Major Supply Chain Shortage
Supplies like plywood, windows, cabinets, plumbing fixtures, and more are hard to keep in stock, making them difficult to get. Many supplies have had to order things well in advance, as builders are starting to stock up on supplies for the future, which isn’t quite helping the supply shortage.
The shortage is causing major delays in projects. It usually takes about 6 to 9 months for new homes to be built in states like Arizona. But now homes are taking 10 to 14 months since it is difficult to get the needed supplies to finish the house.
Price increases are also being caused by the supply shortage. For example, lumber prices have increased anywhere from 20 to 40 percent most weeks.
Not only is the construction industry being faced with a supply shortage, but they are also experiencing a labor shortage.
Many construction companies are juggling the challenges of not getting the needed supplies and the inability to keep workers on their payroll.
Unfortunately, we don’t expect to see solutions until the end of the year at the earliest. The industry just needs to wait it out and hopefully get caught up with enough supplies, more workers, and lower prices sooner rather than later. The good news is that home building is not going anywhere, but hopefully, these issues are.
If you are involved in a construction project and concerned about how the supply shortage can impact your business, meet with an Arizona construction lawyer to learn more about construction law.