Volatility of Construction Materials in Q3
The previous two years have been a wild ride when it comes to the prices of construction materials. While some materials have fluctuated drastically, many others have steadily risen. With bottlenecks in the supply chain and rising gas prices, along with other untimely factors, the cost of securing necessary construction materials placed an added burden on every firm across the nation. These costs had to be, unfortunately, passed on to the consumer.
However, as pressure on the supply chain continues to dissipate, certain commodity prices have begun to improve. While the ongoing war in the Ukraine continues to pose challenges globally, gas prices have recently begun to trend downward, and that cost appears to be already reflected in the price of some domestic materials.
VOLATILE LUMBER PRICES
Lumber has been one of the most volatile of materials over the past two years. Since September of 2020, this commodity has drastically fluctuated, rising 40 percent over the second half of 2021 and now lowering 16 percent over the first half of 2022.
GLASS STOREFRONT SYSTEMS SURGING
While flat glass has somewhat stabilized nationwide, we have seen a staggering increase of 40 percent in the price of glass for storefront systems, here in the Southwest, over just the past quarter.
STEEL MILL PRODUCTS
Prices on steel mill products have dropped more than 14 percent since spiking in May as demand continues to wane. Experts point to the overproduction of steel in Q4 of 2021 as the reason for this drop in price.
FINAL DEMAND FOR GOODS
In the month of July, the index for final demand for goods fell by 1.8 percent, which is the largest drop since early 2020 when it fell 2.7 percent. Much of this decline can be attributed to a 16.7 percent drop in gasoline prices.
Download and Share This Article's Infographic and Other Research
Popular Past Posts
Categories
Follow Us
Related Posts
-
Today’s Trends in Dallas and Phoenix Construction
Our mission is to provide you with the latest insights into market trends and conditions. This Q2 2024 report is a valuable resource, offering comprehensive data that not only shares insights behind current market conditions but also outlines their impact and proactive strategies to prepare for the future. With a particular focus on the design and construction sectors, this report equips us with the knowledge needed to build with confidence and readiness in Dallas and Phoenix.
-
LGE’s Q1 2024 Construction Delivery Outlook.
At the core of our mission is the commitment to provide you with up-to-the-minute insights into prevailing market trends and conditions. Tailored specifically to the design and construction sectors, this report empowers us with the knowledge to approach the market in Dallas and Phoenix with confidence in 2024.
-
Innovations in Design-Build: A Conversation with LGE Design Build’s Texas Team
In a recent interview, LGE Design Build's Texas team discussed their effective communication strategies in design-build projects. They highlighted the use of technology and shared examples of successful client collaborations. The team also expressed excitement about emerging technologies like 3D scanning and Matterport walkthroughs, which are shaping the future of design and construction in Dallas.
-
Navigating Supply Chain, Material, Labor and Construction Trends: Insights from LGE Design Build.
The Dallas-Fort Worth Metroplex and Phoenix regions are witnessing significant growth, along with their respective commercial real estate and construction sectors. In this dynamic environment, there are both challenges and opportunities. To ensure your business thrives, it's crucial to stay well-informed and adapt to market trends. At LGE Design Build, we are committed to assisting you in navigating these thriving markets. Feel free to access our Q3 Construction Delivery Outlook for the most up-to-date research and insights.