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
Contractors | Dec 1, 2015
ABC: September's nonresidential spending retains momentum in October
Spending increased in 10 of 16 nonresidential construction sectors on a monthly basis.
Greenbuild Report | Dec 1, 2015
Data centers turn to alternative power sources, new heat controls and UPS systems
Data centers account for 2% of the nation’s electricity consumption and about 30% of the power used annually by the economy’s information and communications technology sector, according to the National Renewable Energy Laboratory.
![The contractor’s role in promoting job site sustainability [AIA course]](/sites/default/files/styles/list_big/public/Screen%20Shot%202015-12-01%20at%209.07.23%20AM.png?itok=UyfyfxCn "The contractor’s role in promoting job site sustainability [AIA course]")
Contractors | Dec 1, 2015
The contractor’s role in promoting job site sustainability [AIA course]
Robins & Morton’s Jackie Mustakas offers specific actions that contractors and construction managers can take to green every job site.
Contractors | Nov 30, 2015
Sundt Construction opens its own craft employee training center
The contractor's Center for Craft Excellence, in Phoenix, is in response to the labor shortages in the industry.
Contractors | Nov 24, 2015
FMI survey: Millennials in construction get a bad rap, tend to be loyal, hard-working
While the stigma exists that Millennials are entitled, disloyal, and lazy, it appears that this is not true, according to a new report from FMI.
Contractors | Nov 12, 2015
Construction will outpace worldwide GDP growth over the next 15 years
Three countries—the United States, China, and India—will account for nearly three-fifths of worldwide construction growth over the next 15 years, according to a new report from Global Construction Perspectives and Oxford Economics.
Contractors | Nov 5, 2015
Budget bill provision raises OSHA fines for first time in 25 years
Inflation-adjusted penalty hikes could go up as much as 80%.
Contractors | Nov 3, 2015
ABC, AIA & NAHB: Residential, nonresidential construction growth expected in 2016
Economists from the three trade associations discussed several indicators for sector performance in a joint web conference.
Contractors | Nov 2, 2015
ABC: September's nonresidential spending slip no cause for concern
Despite the monthly drop, September's year-over-year increase is largest in seven years. Seven of 16 nonresidential construction sectors saw spending increases.
Contractors | Oct 30, 2015
ABC: Economic growth stronger than headline GDP figure suggests
GDP expanded 1.5% during the third quarter while nonresidential fixed investment expanded by 2.1% during that period.
