A recent survey of more than 200 subcontractors and suppliers in the Northeast found that respondents have been prefabricating 20% more than they did prior to the COVID-19 pandemic. And 71% said that they had seen an increase in requests for design-assist proposals, a strong sign that speed-to-market is a priority.
Consigli Construction’s Market Outlook Report for the first and second quarters of 2021 states that the pandemic has motivated subs and vendors to turn to technology in their shops and field processes. The survey’s respondents are also more receptive to cost-saving material management software, tool upgrades, and robotics that improve efficiency and give subs the flexibility they need to manage on-site workforces at a time when skilled labor is in short supply in some markets.
While 72% of the survey’s respondents say they aren’t concerned about staffing their projects this year, Consigli suggests they need to monitor their workforce resources for 2022, based on the amount of work in the pipeline.
PRICING AND SUPPLY ARE ISSUES FOR SEVERAL PRODUCT
The Market Outlook expects copper and steel to manifest the greatest risk for price inflation. Chart: Consigli Construction
The Market Outlook Report also looks at materials price inflation in several product categories (see chart). Metal studs, copper, and PVC are the materials that the report expects to show the greatest price increases in the first half of the year. The report also suggests that lumber—whose pricing had jumped by 73% since February 2020—could be stabilizing, depending on residential demand.
(The Commerce Department reported last week that housing starts had surged to a nearly 15-year high in March.)
Consigli recommends that subs keep a close eye on high-risk materials, and lock in prices as soon as possible to avoid exposure to inflation. Subs should also watch for supply-chain disruptions, especially for products coming from overseas like flooring and cabinetry. Where possible, have access to alternate materials and delivery options.
Related Stories
Giants 400 | Feb 6, 2023
2022 Transit Facility Giants: Top architecture, engineering, and construction firms in the U.S. transit facility sector
Walsh Group, Skanska USA, HDR, Perkins and Will, and AECOM top BD+C's rankings of the nation's largest transit facility sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Telecommunications Facility Sector Giants: Top architecture, engineering, and construction firms in the U.S. telecommunications facility sector
AECOM, Alfa Tech, Kraus-Anderson, and Stantec head BD+C's rankings of the nation's largest telecommunications facility sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Religious Sector Giants: Top architecture, engineering, and construction firms in the U.S. religious facility construction sector
HOK, Parkhill, KPFF, Shawmut Design and Construction, and Wiss, Janney, Elstner head BD+C's rankings of the nation's largest religious facility sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Justice Facility Sector Giants: Top architecture, engineering, and construction firms in the U.S. justice facility/public safety sector
Stantec, DLR Group, Turner Construction, STO Building Group, AECOM, and Dewberry top BD+C's rankings of the nation's largest architecture, engineering, and construction firms for justice facility/public safety buildings work, including correctional facilities, fire stations, jails, police stations, and prisons, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Parking Structure Giants: Top architecture, engineering, and construction firms in the U.S. parking structure sector
Choate Parking Consultants, Walker Consultants, Kimley-Horn, PCL, and Balfour Beatty top BD+C's rankings of the nation's largest parking structure sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Market Data | Feb 6, 2023
Nonresidential construction spending dips 0.5% in December 2022
National nonresidential construction spending decreased by 0.5% in December, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $943.5 billion for the month.
Giants 400 | Feb 3, 2023
Top Workplace/Interior Fitout Architecture, Engineering, and Construction Firms for 2022
Gensler, Interior Architects, AECOM, STO Building Group, and CBRE top the ranking of the nation's largest workplace/interior fitout architecture, engineering, and construction firms, as reported in Building Design+Construction's 2022 Giants 400 Report.
Multifamily Housing | Feb 3, 2023
HUD unveils report to help multifamily housing developers overcome barriers to offsite construction
The U.S. Department of Housing and Urban Development, in partnership with the National Institute of Building Sciences and MOD X, has released the Offsite Construction for Housing: Research Roadmap, a strategic report that presents the key knowledge gaps and research needs to overcome the barriers and challenges to offsite construction.
Steel Buildings | Feb 3, 2023
Top 10 structural steel building projects for 2023
A Mies van der Rohe-designed art and architecture school at Indiana University and Morphosis Architects' Orange County Museum of Art in Costa Mesa, Calif., are among 10 projects to win IDEAS² Awards from the American Institute of Steel Construction.
Multifamily Housing | Feb 2, 2023
St. Louis’s first transit-oriented multifamily development opens in historic Skinker DeBaliviere neighborhood
St. Louis’s first major transit-oriented, multi-family development recently opened with 287 apartments available for rent. The $71 million Expo at Forest Park project includes a network of pathways to accommodate many modes of transportation including ride share, the region’s Metro Transit system, a trolley line, pedestrian traffic, automobiles, and bike traffic on the 7-mile St. Vincent Greenway Trail.
