Is the Industry Out of the Woods?

The run on lumber appears to be slowing as prices have begun to fall. As of June, lumber was down 50% from its all-time high. However, experts predict the pricing will remain well above their historic norms overall.

While some supplies are making their way back into stock, others continue to fall short. The building industry continues to experience rising prices for steel, laminate sheeting, copper, brass, and plastic-based materials, such as PVC pipe. Now the industry is seeing the impacts from the freezing storms that tore through Texas, shutting down the petrochemical-production region last winter in the rising prices of resins, the raw material needed to manufacture wood products and even paint.

The effects of the pandemic coupled with a quick economic recovery continue to create an unprecedented number of shortages. The building industry continues to strive to find suitable materials to meet customer’s timelines. In the past, materials suppliers typically guaranteed prices for 60 to 90 days and often stuck to those prices even if an order trickled in later than expected. Now suppliers are quoting prices for only a week or two, and many can’t honor beyond that as pricing steadily rises.

“We’re doing everything in our power to help our clients navigate these challenges. The industry predicts more price increases and material disruptions into August. Our team is doing everything we can to communicate with our clients with the most up-to-date information to protect their budgets and timelines,” explained John Richards, Principal of J.C. Richards Construction Company, Inc.

J.C. Richards Construction Company, Inc. is a full-service general contractor with 25 years of experience in commercial construction, office, industrial, medical, envelope, mixed-use, and multi-family. Our efficient processes utilize the latest technology to ensure your project meets timelines and your budget. For more information on how J.C. Richards Construction can offer creative solutions, visit jcrichards.com or give us a call at (253) 383-6206