After the construction industry experienced a significant increase in construction costs in 2017, in 2018, this trend has only continued. In the first section of this two-part article, our Sarasota construction attorneys discussed how the labor shortage problem has resulted in rising labor costs. In this section, we will discuss the rising prices of construction materials. For accurate legal counsel pertaining to any construction-related legal matter, contact a Sarasota construction attorney today.
Surging Construction Material Costs
After 20 consecutive months of mounting costs on construction materials, many essential building materials have increased by at least 3 to 8 percent in the last few years. Although these surging prices are a serious concern for industry professionals, construction materials have actually seen a steady increase in pricing since 2011. However, this inflation issue has begun to rapidly accelerate in the last few years and industry experts have forecasted that it will continue on into 2019.
Why Are Construction Prices Surging?
There are a variety of reasons why materials are skyrocketing in price. For example, rising gas prices to deliver construction materials impacts the material costs. Other issues like the real estate market and a healthy economy result in higher prices for materials as well. Recent news in regard to foreign trade policy and meeting the domestic demand for products like steel and aluminum may also significantly impact the market value for these materials as well.
Tariffs Impact on Construction
Another issue is proposed tariffs on steel and aluminum. These tariffs are being closely monitored and may continue to impact the construction market. Prices for iron, steel, and even softwood lumber have dramatically increased in the last year. During an unpredictable time in the market, suppliers are charging more for these products. With market uncertainties in the short-term, many construction professionals are looking to develop new strategies to ensure they reach their bottom line. In the third section and fourth sections, we will provide you with a few tips on reducing your project spending.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.