02/11/2022
CONSTRUCTION INFLATION ALERT:
The construction industry is in the midst of a period of exceptionally steep and fast-rising costs for a variety of materials, compounded by major supply-chain disruptions and stagnant or falling demand for projects—a combination that threatens the financial health of many contractors.
Although the overall economy has strengthened significantly in the past few months and appears to be headed for further growth, the construction industry has experienced a much more uneven recovery. Lagging demand for numerous types of nonresidential construction is keeping many contractors from passing on their added costs. This combination of steeply rising costs and nearly stable bid prices threatens to push some firms out of business and keep the industryʼs unemployment rate unacceptably high.
Contractors need, more than ever, to closely monitor costs and delivery schedules for materials and to communicate information with owners, both before submitting bids and throughout the construction process.
I try and give my clients every and any critical information that will add value and help build their bottom line. Anyone who reads this, I hope this brings added value to your business.
Jacob Killeen - Frost Bank/Insurance Advisor
