Why prices for construction material have gone up

Yes, Covid has not only threatened to affect your health but your decisions on that new business or residential renovation.

That’s because of how some building material prices have risen in the past year, making business owners think twice about their new gut renovation and expansion.

Prices for lumber, steel, and some other building materials have increased, but the truth is: What can project owners expect in the coming months, and should they postpone their new construction? I wouldn't be quick to say yes to that.

We all have to live with this devastating situation, but at Minnow we also live for solutions.

Labor has been a challenge for most construction companies, we understand, and this is also part of the problem. A few Covid-19 outbreaks among production workers have disrupted job sites and production. On top of the direct labor challenges, truck drivers are vital for the transportation of material which unfortunately there is a shortage across the economy. Yes, a massive demand!

Lumber prices are up 171% since the start of the pandemic in 2020, and this only means business owners may have to consider the types of materials that their project will require. For commercial construction, steel prices generally have a greater impact, precast concrete walls may be part of your solution, but not the final choice.

According to Forbes Magazine, prices may remain high for another two or three years, then drop back to more normal levels. The key to the pace of decline will be mortgage rates.

But It’s also important to consider that when starting a building project, the bidding process likely won’t happen for several months, at which time material costs may come down.

The question is still on, what can business owners do with plans of renovation?

Don't let this scare you, keep your project moving through the planning and design phase and keep an eye on markets along the way. labor and materials each make up about half of a project’s overall costs, and when it comes to Labor, everyone is back to work, and one less thing to worry about.

This is your greenlight to go ahead with your project and remember that Minnow Contractors, as an experienced builder in NYC will always provide the best advice when it comes to your construction projects.