[ad_1]
After pandemic and supply chain issues have caused prices to skyrocket, moderate pricing is expected in the new year
Linesight, a global construction consultancy, sees US construction commodity prices drop in 2022 after experiencing hyperinflation earlier this year. He also expects total construction spending in the United States to exceed $ 1.707 trillion in the new year, an increase of almost 4% over 2021. The results are part of Linesight’s third quarter revenue report and pricing forecast, based on interviews with nearly 160 experts from the industry around the world.
From late 2020 to mid-2021, commodity prices for building materials like lumber, steel, copper, and concrete reached unprecedented highs. Several factors explain the price growth. The pandemic has disrupted production cycles and impacted the supply chain. Forest fires in the United States and Canada disrupted timber harvesting and sawmill operations. Strikes, labor shortages and soaring energy prices have affected the availability of copper and steel products.
While many of these challenges are still present, Linesight sees prices falling between the third and fourth quarters and will continue to experience downward price pressure in 2022. Here are some highlights from the report.
Lumber prices jumped almost 28% in 2021 from 2020 and has been one of the most affected building materials in the world. However, as production increased throughout the year, prices fell. Linesight expects lumber prices to moderate more than 5% from current prices in the new year.
Steel prices peaked at around $ 1,800 / tonne in July, a 200% increase from 2020, driven by demand for finished products like durable goods and automobiles. Linesight predicts that prices will drop 5% in 2022, as the US steel industry remains sheltered from rising energy prices.
“We are seeing that many of the inflationary pressures driving the boom in building material prices ease significantly in 2022 as supply chain and labor issues are resolved,” he said. said Patrick Ryan, executive vice president, Americas, Linesight. “This drop in material prices will help support construction activity, which we expect to increase significantly in the new year.”
Please request a copy of the report using the Linesight Commodity Report form here.
About line aiming
Linesight is a multinational construction consulting firm with over 45 years of experience providing cost, schedule, program and project management services to a multitude of industries including life sciences, commerce, data centers, high tech industry, residential, hospitality, healthcare, and retail. Linesight’s specialist project teams, each with specific skills and experience, provide better predictability of project results, faster project delivery, greater profitability and maximum dollar value for its clients. For more information, please visit http://www.linesight.com
See the source version on businesswire.com: https://www.businesswire.com/news/home/20211215005825/en/
[ad_2]
Source link
