Building Enclosure recently sat down with Jay Andreas, CEO of ASI Construction, to discuss the increase in construction materials and what this means for the construction industry.
Q: What materials have had the greatest increase in cost?
JA: I say that lumber and shingles have had the greatest increase. Additionally, I see this increase in residential and commercial roofing materials, all of the above.
Q: On average, what has been the increase? Are we seeing x2 the amount being paid?
JA: On average, we are seeing a 7 percent increase quarterly.
Q: What do these price increases affect the most?
JA: These increases affect overall sales, retention and profit margins. The closing percentage is lower because the cost is higher.
Q: What has the biggest increase: commercial, residential or are they equally changed?
JA: I say that they are equally changed.
Q: How are architects affected by these increases?
JA: From my experience, builders are building fewer houses because materials are more expensive. That in tandem slows down architects.
Q: Do you see the prices going down anytime soon?
Q: Has the price increase slowed down the AEC industry overall?
JA: Yes, it has slowed down the industry as well as the lead times.
Q: In your opinion, has the process of finding construction crews changed?
JA: Yes, it is much easier to find crews because the industry is slow and everyone is looking for work.