NEW ENGLAND MATERIAL COST & LEAD TIME TRENDS – FEBRUARY 2021

SLAM Construction Services’ latest monthly report indicates further fluctuations, long lead times and price increases in raw materials, local construction materials, and MEP equipment. After almost a year of the pandemic, the construction market continues to be in flux as we prepare for a new normal.

Raw Materials

• Petroleum prices has risen steadily since late last year as coronavirus vaccines and supply curbs from OPEC (Organization of the Petroleum Exporting Countries) and its allies spur hopes that global stockpiles will continue to slide.
• The price increase of all metallic materials could be due to a bull market along with market fears of material shortages. Expectations of higher demand for nickel batteries remains strong for EV developments.

Construction Materials

• A rise in steel coil, copper and oil has increased costs with associated products.
• Structural steel looks to be holding steady for the time being, although Nucor has reported an additional price increase later this month.
• All glass products plateaued for this month and the lead times remain the same with a strong backlog.
• Lumber prices continue to rise, gaining another 50% increase in February.

MEP Equipment

• Mechanical materials have increased 10-20% this past month, and the manufacturers are looking to raise equipment pricing by 5% by next month.
• A lighting supply house reports the lead-times are still about the same but steel has seen a sharp increase driving the cost of the light poles. Most manufacturers have had a 5-10% increase on most products since January.
• Electrical gear prices continue to rise with the help of metal pricing soaring high.