‘There’s Almost Nothing That’s Unaffected’: Supply Woes Boost Costs for St. Louis Construction Firms
Date Posted: December 21, 2021
Posted In: News,
From St. Louis Post-Dispatch: Stryker Construction owner Gary Wood wears many hats these days: builder, manager and, now, educator.
Wood, whose Overland-based company specializes in “tenant improvement” work, or office interior renovations, is having more conversations with clients about why costs are rising. No longer can he guarantee bids for the typical 30 days like before the pandemic — construction materials prices are spiking as much as 30%.
“You can only control what you can control,” said Wood.
The coronavirus pandemic shut down manufacturers for a few weeks in 2020. But when the economy reopened more quickly than expected, factories weren’t ready. Now, more than 18 months later, the supply chain is still struggling to catch up. In St. Louis, construction companies can no longer assure clients how long jobs will last and when materials will arrive. The only guarantee is that costs will rise.
“There’s almost nothing that’s unaffected,” said Jeff Arbuckle, senior project manager for commercial real estate firm JLL in St. Louis.
Steel and lumber prices have jumped. But so have costs for copper, brass and gypsum, which is used to make drywall, Arbuckle said. In sum, costs have risen 5% over the past year, and Arbuckle expects it to increase another 5% over the next year.
Tim Spiegelglass, owner of Maryland Heights-based restaurant builder Spiegelglass Construction, has seen supply chain issues impact the availability of everything from adhesives to light fixtures. New restaurant owners used to order kitchen equipment a few weeks into a project. Now: four weeks before construction even starts.