What is happening with materials prices?

Throughout 2022 the construction industry struggled with price increases for almost every material under the sun. As we well know, this caused major disruptions throughout construction businesses of all sizes. Leaving many having to absorb the price increases and fight for their survival. Some survived… many didn’t.

As the new year has begun we were all crossing our fingers hoping we wouldn’t face the same problems. Yet we seem to be out of luck. Materials continue to be receiving price increases larger and at a faster pace than normal.

Builders need to be very careful when pricing contracts especially when pricing fixed-price contracts. Builders should regularly communicate with their suppliers to stay up to date with the prices and expected changes occurring throughout the year.

Towards the middle of 2022, there were major supply shortages of materials in Australia, namely timber. Luckily as the year has come to an end and 2023 has begun these shortages seem to be getting better, at least in Australia.

So it does seem that there is some light at the end of the tunnel. We will continue to monitor prices and hope to see things start to level and come back to some sort of normality - whatever that may be.