Construction is still booming across the state, but the industry has hit a roadblock with supply shortages, as well as labor shortages. This is slowing down construction projects significantly.
Unfortunately, the state of Arizona is being hit hard with the shortages, mainly due to the success of the construction industry in the area.
Due to the supply chain shortage, homebuilders are facing a major delay in projects, making it difficult to not only finish what they have started but to start new projects.
A number of supplies needed to start and finish projects such as plywood, lumber, cabinets, plumbing fixtures, windows, and much more are hard to find in stock. When the supplies are in stock, their prices have increased, anywhere from 20 to 40-percent depending on the week.
In the state of Arizona, most new homes can be built in about 6 to 9 months. However, many of these new homes are taking twice as long to finish. Anywhere from 10 to 14 months.
The supply shortage isn’t the only problem the construction industry is facing. On top of the supply shortage, the industry is also being hit with a labor shortage.
Just like most industries, employers are having a difficult time getting employees to return to work. This is causing some construction companies to offer higher than usual pay along with extra benefits.
That means construction companies across the state are not only spending more on supplies, they are also paying more for employees, and not finishing projects as quickly.
As of now, those in the construction industry just need to deal with the cards they are being dealt and patiently wait for the shortages to go away.
Are you involved in a construction project? The supply and labor shortage can cause extra stress. If you are unsure how it will impact your business, talk with an Arizona construction lawyer at our firm to learn more about protecting your construction business.