Publisged by Vancouver Roofers on Nov. 20, 2021 at 6:37am
Anyone building anything larger than a doghouse can expect cost overruns, some of which are significant enough to jeopardize the construction industry for houses and commercial structures
The cost of basic supplies has risen dramatically in recent months.
Marshall Bone, a lifelong DeLand general contractor, described it as “insanity.”
Bone told The Beacon, “I’ve been at this since I came out of the Air Force in ’73, and I’ve never seen such inflation in building supplies.” “Lumber is the worst.” CDX plywood, five-eighths: you could get it for $22, $23 at the start of the year. It was $66.95 as of yesterday.”
We spoke with Bone on May 25 and those pricing are for 4-foot-by-8-foot sheets.
Contractors and their clients are often eager to spend more, as prices do not appear to be leveling down.
According to Bone, the constant and rising demand is currently hurting supplies.
He stated, “We’re running into shortages.”
Lumber is a commodity that is vulnerable to dramatic price and supply volatility.
“Everything is in limited supply, including electrical wiring, switches, plugs, and meter boxes.” Bone explained, “Air-conditioning equipment.” “Some roofing supplies are up 40% in price if you can find them.”
“PVC pipe – that’s rocketed up,” he continued.
Building supplies are in high demand, with purchasers eager to pay whatever the market requires.
“It’s difficult to obtain almost anything. “Suppliers aren’t keeping stock,” Bone explained.
The greater cost of transferring them as completed items to wholesalers and then to retailers, he added, is one element influencing costs.
“Diesel costs are rising,” stated Bone.
Truckers pass on greater expenses to end users when they have to pay extra to pick up and deliver products.
Not to mention, on top of the rising spiral in material costs, Bone claims there is a “serious labor shortage,” which he attributes to many people’s unwillingness to work.
“It’s hot out there, and they’d rather stay inside and play video games while the government pays them to sit on their tails,” Bone remarked.
All of these negative aspects, according to Bone, may have an impact on the construction and real estate markets, as delays in project completion may put off potential purchasers.
“I believe there will be a lot of disgruntled purchasers,” Bone said. And there seemed to be no end in sight. “I’m not sure when the building madness will end.” It’s taking an eternity to build something. That cost is still being borne by the owner.”
It will take awhile to recover from the 2020 economic lockdowns.
“When the pandemic occurred in January of last year, we had over $900,000 ready to go, and the owners phoned up and put everything on hold,” Bone explained. “We’ve done roughly $310,000 since then.”
He concluded, “It’s insane.”
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