We are all aware of the impact COVID has had on our lives. It hindered our ability to socialize and see loved ones, put many people out of work, and emptied the shelves at grocery stores. Finally, after a few years of adapting, growing, and recovering from this global pandemic, we are beginning a return to “normal”. Not only are we experiencing record-high prices at the grocery store, but we also see them reflected in the construction industry. So how does this affect us, and what has happened due to these shortages and supply chain disruptions?
How Have the Supplies Been Impacted?
According to Business Wire, “Leading up to the end of 2021, many believed the pandemic-related supply chain issues would begin to ease off and allow for a stabilization of the market, but the Russia-Ukraine crisis has deeply affected the situation;” After the initial shortages and manufacturing delays it seemed we might get back on track. Now we realize it will take longer than expected. This phenomenon is widespread and has impacted lumber, appliances, and much more. Order schedules are unpredictable; sometimes items are unavailable, and no one knows if or when they will be back in stock. This makes designing and planning a remodel frustrating for everyone involved.
What Have We Experienced at Creative Contracting?
Three years ago, we could say a kitchen could range between $85,000 and $100,000. Now average price is closer to $120,000 up to $140,000. Cincinnati is no exception to the inflation and shortages we’re seeing. Rick Boyle, the owner of Creative Contracting, says, “I went through a design agreement in 2021 with a client in Cincinnati for an interior renovation. The client decided to hold off on construction due to family issues. The client wanted to move ahead with their project six months later, and we were asked to reprice the project. Overall project cost came in 38% higher.” Stories like this are prevalent throughout the remodeling industry and are not only shocking to our clients but to us as well. Debi Ash, our Project Consultant, says, “It is getting hard to determine the preliminary budget without pricing the projects. I used to be able to say a bathroom will cost between $60,000-$65,000, now, I am seeing that they can come in upwards of $80,000 as a norm. That is just shocking.” Even individual items such as OSB/plywood have increased from $37 a sheet to $84 a sheet in just a few months.
What Can We Do About It?
The fluctuation and unpredictability of the current materials marketplace make it difficult to properly prepare our clients for their remodeling projects. To ensure you can be as prepared as possible, Debi Ash says, “Using the design-build process is really important in today’s market. That way the owners are informed of costs before they are in the midst of construction.” Taking the extra time and care to ensure every detail is hammered out will reduce your chances of surprises and budget modifications. . In this crazy market, we wouldn’t recommend remodeling your home any other way.