Perhaps the best word to describe the current construction environment is uncertain. While opportunities are high, several persistent and problematic conditions continue to pose significant threats to full recovery in 2022. Preparation will be critical to success.
Construction costs are expected to keep rising through 2022 mainly due to insufficient materials and labor availability that will constrain the recovery at least through the first half of 2022. As of November, the 12-month producer price index for steel mill products was up 141.6%, according to the U.S. Bureau of Labor Statistics. Steel pipe and tube, iron and steel scrap have also risen as have concrete products and diesel fuels.