Construction Material Shortage for 2021?

A majority of contractors surveyed indicate they are facing at least one material shortage heading into 2021. Nearly a third of builders say lumber is the one material they are needing the most.

The lumber shortage is followed by steel, electrical and lighting supplies. Fuel, copper, steel and aluminum have increased in price while concrete cost has dipped a little.

According to a report from Ken Simonson, chief economist for the Associated General Contractors of America, steel and lumber prices have jumped quite a bit in the past few months.

There could be some relief on lumber costs after tariffs on Canadian imports dropped from 20% down to 9% however increased demand for lumber could still keep prices high in 2021.

Shortages are also affecting lead times for the materials.

Of course the COVID-19 pandemic has had a significant impact on material shortages and other challenges facing contractors. Here is a look at some issues contractors say they are facing.

  • 83% experiencing product delays.
  • 71% struggling to meet schedule requirements.
  • 68% experiencing delays expected into Q2 of 2021.
  • 58% putting in higher bids on projects.
  • 53% saying major project shutdowns/delays are a top concern.
  • 41% saying material shortages is a severe consequence of COVID-19.
  • 39% turning down work opportunities.