The contractor Consigli Construction has released its latest breakdown of predictions about materials and labor pricing for 21 categories, based on the firm’s survey of more than 200 subcontractors working in the Northeast.
From that polling, Consigli considers HVAC and electrical trades to be at the greatest risk for price increases, based on their projected percentage of a project’s total cost. The firm elaborates that there is potential for price hikes in copper tubing and small-bore pipe, as well as lighting fixtures, copper and PVC, and distribution equipment.
Consigli breaks down pricing risks by 21 categories. Image: Consigli
The good news is that 56% of the subs polled said they were experiencing no major increases in lead times as a result of the coronavirus pandemic. That being said, “subcontractors are continuing to place focus on ordering materials as soon as possible to prevent schedule delays,” says Peter Capone, Consigli’s Director of Purchasing.
The firm singles out glass and aluminum, lumber, distribution and transportation issues, electrical lighting/PVC, and custom fabricated materials as “risks to watch for” in the future. Concerning lumber, which has been in short supply across North America, the report states that suppliers “should catch up” with demand by this winter and next Spring, when homebuilding shifts into a higher gear.
WORKER AVAILABILITY SHOULDN’T HAMPER PROJECTS
More than half of the subs polled weren't having lead time problems. Image: Consigli Construction
Consigli notes that, lately, it has experienced “better than normal” bid coverage and aggressive pricing in nearly every trade. Despite their healthy backlogs, subs are still looking to book work for next year and beyond. And most of the subs polled—93%—are confident they will be able to hire more workers to meet work demand.
“There is potential when the COVID-19 vaccine is developed, the construction market may start trending back toward pre-COVID-19 levels of activity,” which could add product and labor costs. “Therefore, now is the time to move forward with upcoming projects,” writes Capone.
Related Stories
| May 30, 2018
Accelerate Live! talk: Why the AEC industry must adapt to the Internet of Things boom
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), building systems expert Jeff Carpenter explores established and emerging IoT applications for commercial and institutional buildings, and offers a technology roadmap for navigating the IoT landscape.
| May 30, 2018
Accelerate Live! talk: T3 mass timber office buildings
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), architect and mass timber design expert Steve Cavanaugh tells the story behind the nation’s newest—and largest—mass timber building: T3 in Minneapolis.
| May 30, 2018
Accelerate Live! talk: An AEC giant’s roadmap for integrating design, manufacturing, and construction
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), Skender CEO Mark Skender and Chief Design Officer Tim Swanson present the construction giant’s vision for creating a manufacturing-minded, vertically-integrated design-manufacturing-build business model.
| May 30, 2018
Accelerate Live! talk: From micro schools to tiny houses: What’s driving the downsizing economy?
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), micro-buildings design expert Aeron Hodges, AIA, explores the key drivers of the micro-buildings movement, and how the trend is spreading into a wide variety of building typologies.
Market Data | May 29, 2018
America’s fastest-growing cities: San Antonio, Phoenix lead population growth
San Antonio added 24,208 people between July 2016 and July 2017, according to U.S. Census Bureau data.
Contractors | May 27, 2018
Swinerton rebrands to call attention to its broader portfolio
Renewable energy is the kind of higher-margin business sector into which this GC has been expanding.
| May 24, 2018
Accelerate Live! talk: The rise of multi-user virtual reality
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), two of CannonDesign's tech leaders present their early findings from pilot testing multi-user VR technology for AEC project coordination.
| May 24, 2018
Accelerate Live! talk: The next frontier of post-occupancy evaluations
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), ZGF Architects’ Chris Chatto outlines methods for conducting meaningful, holistic evaluations from design to occupancy.
| May 24, 2018
Accelerate Live! talk: Security and the built environment: Insights from an embassy designer
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), embassy designer Tom Jacobs explores ways that provide the needed protection while keeping intact the representational and inspirational qualities of a design.
Contractors | May 5, 2018
Manual data entry still hampers jobsite construction
A new survey also finds managers and executives collecting and managing their work information on multiple platforms.
