Whether you’re contemplating building a house or read the news every day, you may be asking, “why is there a construction material shortage?” Construction materials are one of the many major supply chains that have been deeply disrupted over the last year and a half. There are supply-chain bottlenecks around the world, and there isn’t an immediate end in sight. So what can you do about it? Is it still a good time to start that home renovation project? Read more to hear from professionals about how you can navigate the construction material shortage and still renovate your home.
It Starts With the Supply Chain
The supply chains are in a rough spot in many industries at the moment, and this is due to a combination of factors. Demand across the country is currently spiking, which would normally be a quick adjustment in production. The problem is there is also a labor shortage, and COVID-19 has both contributed to the labor shortage and made manufacturing conditions more difficult. What we have now are major bottlenecks around the world that are struggling to catch up.
Demand Is Soaring
Consumer demand for durable goods, goods that are not for immediate consumption, has spiked during the pandemic as spending shifted from services and consumable goods to durable ones. In other words, consumers are spending less on services, such as airfare or at restaurants, and more on goods like home appliances, vehicles, tools, or electronics.
Demand for durable goods is often an indicator of a strong economy. Consumers are “investing” more of their income in goods that will last a longer period of time, which contributes to wealth preservation and an elevated quality of life. The difficulty is when demand for durable goods increases due to a pandemic. Consumers are home more often, which spurs the demand for goods such as televisions or tools for home projects, but the workforce needed to increase the number of goods supplied is not able to produce goods at the needed rate.
The manufacturing and warehousing industries are essentially in-person positions, which is where some of the problems originate from. Manufacturing has slowed down due to the pandemic limiting how many people can be present in an enclosed space. Goods cannot be produced as quickly as is required for the increased demand, so the supply chain begins to bottleneck.
The shortage of truck drivers that transport materials across the country complicate the supply chain further. The lack of truck drivers means goods cannot be transported as quickly which either means warehouses are not being stocked or warehouses near ports are being overloaded. Shipping costs are increasing as well, which makes goods more expensive, and fewer goods are being moved as a result, further slowing down the process.
COVID-19 has only exacerbated an issue that has been expected long before COVID began. Baby boomers are beginning to retire, and jobs are not being replaced fast enough. This is true, especially in the construction industry. Since 2018, all tradespeople positions in construction have decreased, which puts the labor market in a more difficult position before COVID even began.
Why is There a Construction Material Shortage And What Can You Do About It?
Demand for construction materials has been increasing due to the amount of time people are spending at home. Demand is expected to stay high due to the increase in new construction, but home improvement projects are also becoming much more popular. Since you’re at home more often, why not finish that basement or remodel that kitchen, like you’ve wanted to for years now?
On the new construction side, though materials are more expensive, interest rates are also incredibly low at the moment. This offsets the price of building a house, which has allowed construction to continue past when the elevated price would normally begin to slow down projects. In other words, the low-interest rates made construction so cheap that higher materials prices haven’t slowed things down that much, which has put additional pressure on the supply chain.
In addition, the commercial and government spending on construction has also increased, which adds to the shortage. During slower periods in the economy, investments are “cheaper” and it’s a great time to build if you have the money for it.
What Does That Mean For You?
All of these factors play into the construction shortage, and you will likely see fewer construction materials and elevated prices at your local home improvement store. That doesn’t mean you should hold off on projects, but that does mean your DIY project could be more expensive than you had intended it to be, or it could be delayed if you begin before sourcing all of your materials.
In essence, proper budgeting and planning are more important than ever!
Go With Acadian Windows to Complete Your Home Renovation Project
Acadian Windows has been assisting Louisiana residents with their home improvement projects throughout the pandemic. With the additional damage of Hurricane Ida, our professionals are working around the clock to serve Louisiana residents with their construction needs. As professionals, we’re experienced in sourcing the highest quality construction materials, so you won’t have to worry about the construction material shortage.
All of our materials are produced in the United States, which means Acadian has had a much better time sourcing materials than a lot of companies who manufacture those products across seas. With our consultations, you’ll work with a professional to make sure all of your needs are identified. Acadian then will do all of the work necessary to ensure you are quoted properly and the project can be completed and cleaned up in a timely manner.
Need home renovation or damages repaired, but don’t have the funds necessary right now? Acadian also offers financing options, so you can take advantage of those low-interest rates. When you get in contact with a sales representative, make sure you ask about your financing options, and we will walk you through how to apply.
Contact Acadian Windows & Siding today through our online form, and a representative will be in touch!