01/05/2022
It looks like 2022 will be a challenging year for the global construction industry. In the USA, construction activity in 2022 will strengthen 3% to 5% over 2021 levels if the latest pandemic strain can be contained.
The global construction industry is on the road to recovery (to pre-pandemic levels), however, it could take 6 to 12 months to see a full recovery. Several potential challenges could disrupt this recovery.
The construction material price spikes we have seen in the last 6 to 9 months are starting to stabilize, and in some cases, decline. However, rising inflation construction materials are averaging 10% to 15% higher than pre-pandemic pricing levels.
Delivery times of construction materials such as windows, doors, metal framing/studs, roofing, process pipe fittings, and plumbing fixtures remain a problem. Items that took 4 to 6 weeks to be delivered to the site now can take 8 to 12 weeks or longer in some cases. These delays are causing setbacks and increasing costs to contractors. Pent-up demand has caused huge price spikes to steel, copper, and OSB plywood/lumber products.
To learn more, check out our Q1 newsletter: https://mailchi.mp/compassinternational/1st-quarter-2859321