Pricing and supply chains for commodities are incredibly fluid coming out of the pandemic. Increasing demand for construction materials, limited product inventory and supply chain disruptions are driving up construction costs and resulting in longer lead times for obtaining materials, according to Cushman &Wakefield.
Commodity prices are skyrocketing as corporate and consumer demand returns and supply struggles to catch up. In second quarter 2021, lumber and copper prices are up 60 percent from a year ago. Diesel fuel prices have more than doubled, up 151 percent year-over-year. And cement pricing, which is historically not very volatile, has not changed much year-over-year but is expected to hit growth rates above 4 percent later this year.
During the pandemic, price increases were largely absorbed by general contractors who were struggling to win the limited number of projects in the market. But now that the economy is reopening, project opportunities are growing
