This week we will have quarterly results from some of the construction industry suppliers. The Associated Builders and Contractors says the construction industry is losing jobs – 3,000 fewer in August, according to its analysis. Given what we know about supply chain bottlenecks and delivery delays, what is ahead for the construction industry this fall?
When the economist Anirban Basu of Associated Builders and Contractors looks at the latest numbers of construction jobs, he knows what is to blame: “The worldwide spread of the Delta variant has increased the problems in the supply chain, it means higher prices for inputs, they increases the cost of providing construction work. “
And, Basu said, some contractors were reluctant to build until things got better. The delivery of raw materials such as steel and wood is often delayed by slowdowns in ports from China to Los Angeles.
Aldo Martinez of Industrial Metal Supply in San Diego said it feels like there are delays from all directions right now.
“Trucking problems or something like that, an example: Everything that is coming from the east has caused delays because of the hurricane,” said Martinez.
But interest rates are still low and, according to Basu, these rates create incentives to finance new projects.