With the current volatility in the market and repercussions from COVID-19, SLAM Construction Services is closely monitoring the New England construction material supply chain for pricing and availability changes. This enhanced monitoring will allow for a more responsive dialog between our clients, designers and subcontractors for solutions to better mitigate the effects these may have on our current projects and projects in design.
We are seeing marginal increases in the raw materials needed to produce finished goods.Petroleum, after historic lows, continues to increase. Most other raw material costs being tracked are relatively stable, with the exception of increases in iron ore and as a consequence, “red steel” and light gauge metal framing over the period evaluated. Conversations with subcontractors who rely on these raw materials, and the construction materials derived, state that with the exception of some grades of lumber, particularly Pressure Treated materials, the supplies are good.
The main driver for the structural steel & LGMF increase in this report was the increase in the raw materials, noted in the chart above. Also noted is a decrease in the price of lumber.
As States continue to open, some HVAC equipment are decreasing in price and lead times. Electrical equipment, domestic and imported, has see no change from the previous month.