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Construction’s supply chain outlook: Analysts and contractors break down prices and lead times for concrete, cement, steel, lumber, insulation, drywall and HVAC equipment in the coming year.
As reported in Construction Dive; plan for market conditions to get worse before they get better.
Despite battling supply chain issues since late 2020, the construction industry will see continued material price escalation over the next couple of years, according to industry sources.
The forecast for year-over-year price escalation in 2022 remains between 9% to 12%, said Michael Hardman, vice president of Turner & Townsend, a U.K.-based global real estate and infrastructure consultancy. At the same time, mounting inflation in the U.S. will further compound these difficulties.
Don’t expect a quick recovery for mechanical components, such as HVAC equipment or wiring and electrical items, said Tom Park, vice president of strategic supply chain at Skanska.
“HVAC right now is probably one of the most challenging items that we have to procure in terms of equipment,” said Park. “It looks like it’s actually continuing to worsen.”