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
| Oct 12, 2011
Vertical Transportation Systems Reach New Heights
Elevators and escalators have been re-engineered to help building owners reduce energy consumption and move people more efficiently.
| Oct 12, 2011
Building a Double Wall
An aged federal building gets wrapped in a new double wall glass skin.
Office Buildings | Oct 12, 2011
8 Must-know Trends in Office Fitouts
Office designs are adjusting to dramatic changes in employee work habits. Goodbye, cube farm. Hello, bright, open offices with plenty of collaborative space.
| Oct 12, 2011
FMI’s Construction Outlook: Third Quarter 2011 Report
Construction Market Forecast: The general economy is seeing mixed signs.
| Oct 12, 2011
Bulley & Andrews celebrates 120 years of construction
The family-owned and operated general contractor attributes this significant milestone to the strong foundation built decades ago on honesty, integrity, and service in construction.
| Oct 12, 2011
Consigli Construction breaks ground for Bigelow Laboratory Center for Ocean Health
Consigli to build third phase of 64-acre Ocean Science and Education Campus, design by WBRC Architects , engineers in association with Perkins + Will
| Oct 11, 2011
AIA introduces five new documents for use on sustainable projects
These new documents will be available in the first quarter of 2012 as part of the new AIA Contract Documents service and AIA Documents on Demand.
| Oct 11, 2011
Pink light bulbs donated to Society of Memorial Sloan-Kettering Cancer Center
For every Bulbrite Pink Light Bulb that is purchased through the Cancer Center Thrift Shop, 100% of the proceeds will be donated to help support breast cancer research, education, screening, and treatment.
| Oct 11, 2011
ThyssenKrupp elevator cabs validated by UL Environment
The conclusive and independent third-party validation process is another step toward a green product line.
| Oct 11, 2011
Ballard Spahr launches real estate recovery group
The new group represents an expansion of the company’s Distressed Real Estate Initiative, which was launched in 2008 to help clients throughout the country plan, adapt and prosper in a challenging economic environment.