Construction Commodities Update

Starting construction now may look daunting as commodity prices are at an all-time high, making it more important than ever to work with a skilled design & build firm to develop a detailed plan for your renovation or ground-up custom build. A design builder will be able to use their experience to develop a design and construction schedule that can minimize costs and manages every element of your project from start to finish, allowing you to make sure every dollar put into your biggest investment is well spent.

The wood, copper, steel, and cement commodity markets are at record highs due to significant increases in demand for construction around the world, and our current logistic system cannot handle such a spike in demand in a short period of time. Compounded with looming material slowdowns, most construction projects are facing steeply rising costs as demand skyrockets; according to RoMac Building Supply, their Wood Commodity Index (Index) for May 2021 jumped 20.3 percent to $1,405.25 per thousand.

While commodity prices are on the rise, it may not be the best time to start breaking ground on new construction, but it is the perfect time to spend your time perfecting your home design and pre-planning your project, so you’re ready to take advantage of price drops as material demands stabilize. It is also important to note, higher pricing and tight labor is not making the demand evaporate. For every person that cancels a project or order, there are three behind them that will take their spot. High-end and specialized construction supplies have become even harder to find and quick shippers are selling products for boosted premiums, as longer lead times from a chaotic supply chain wreak havoc on carefully constructed plans.

With summer quickly approaching, there is an opportunity for the commodity markets to drop, but experts warn not to expect any form of collapse; these markets are predicted to remain high and challenging into the foreseeable future. We ask our clients to please keep this in mind as prices and delivery times for construction materials continue to fluctuate and wish to remind you that for every dollar spent in pre-construction, you could save up to a thousand during construction.

Thank you for your understanding during this unprecedented time. If you would like to get started on your project plan, and get ready to take advantage once material prices drop, reach out to us at (813) 259-111, or visit our website at www.ramoscompanies.com