Post-Pandemic Construction Concerns
With the Covid Vaccine readily available, work demand in the commercial construction industry is returning to normal and many are eager to get back to work so why is there a lull in project execution?
After reading through this article it started to make more sense – there is currently a material and labor shortage in the U.S.
According to the Daily Construction Journal:
“Construction companies continue to face shortages of building materials like wood and steel, while volatility in construction product costs increasingly impacts business, according to the U.S. Chamber of Commerce for Commercial Construction (Index) data for the second quarter. This quarter, 84% of contractors faced at least one material shortage. Almost half (46%) of building contractors said decreased availability of construction products was a major concern lately, up from 33% in the same final quarter.”
The US Chamber of Commerce’s Commercial Construction Index is a quarterly economic index designed to gauge prospects and resulting confidence in the commercial construction industry.
I found the following statistics to be very interesting despite the material shortages we are enduring as an industry in 2021:
“The results for the second quarter of 2021 from the three main drivers are:
- Revenue: Contractors’ revenue expectations for the next 12 months rose to 61 (four points more than in the first quarter).
- Confidence in New Businesses: Overall contractor confidence increased to 62 (up three points from Q1).
- Backlog: The ratio of the average current to the ideal backlog rose by three points to 72 (plus three points compared to Q1).”
Although there are post pandemic concerns when it comes to material and labor, the statistics from the U.S. Chamber of Commerce shows there is optimism throughout contractors in the commercial construction industry.
We here at Albion were fortunate enough to continue to operate at full capacity and have maintained a steady workflow throughout the pandemic. We are actively searching for ways to combat the material shortage on our end for all of our projects. We are optimistic about the commercial construction industry as a whole and we are looking forward to coming out stronger because of these challenges we’re facing!