For those of you who have been holding off on your prospective remodels waiting for Contractor’s pricing to bottom out, you may have already missed the boat.
Although Contractor’s and Subs LABOR pricing has indeed hit rock bottom and will likely remain there for awhile, the rising price of construction materials across the board will at least offset the discounted labor and will continue to rise through the summer months. Rising fuel costs and the upcoming product demand for rebuilding Japan after the horrible earthquake/tsunami disaster will drive prices even higher.
We’ve seen this happen in previous years where one country’s demand for products dramatically increased prices everywhere else. China’s aggressive infrastructure overhaul played a huge role in concrete price increases over the last few years as they bought up huge amounts of materials needed for the production of concrete leaving limited supplies on the table, thereby forcing a supply and demand increase.
Other product increases include a whopping 25% increase on drywall in Dec 2010 and asphalt roofing shingles have seen steady increases over the last year due to higher oil prices. Most products rely on oil for their production and pretty much everyone relies on fuel to transport from manufacturer to consumer.
Although Contractor’s held tight to their bottom lines in 2010 despite a 4.6% increase in material pricing, the predictions for 2011 are grim and if Contractors aren’t quick to adjust they’ll soon be seeking alternative careers.