Material Shortages, Price Increases

Nov. 24, 2020 – According to Ken Simonson, chief economist for Associated General Contractors of America (AGC), selective materials shortages and price increases continue to affect contractors. AGC has received reports of cement shortages in California and Utah. Participants in the October ABI survey also reported problems. Overall, six in 10 responding firms this month indicated that they have seen some degree of higher prices/more limited availability of construction materials over the past six to 12 months, with 32% reporting significantly higher prices/limited availability, and 28% reporting modestly higher prices/limited availability. At firms that reported that they have seen higher prices/more limited availability for construction materials in the past six to 12 months, 91% indicated that price/availability issues are at least a somewhat serious problem at their firm, with 15% reporting it as a very serious problem.