As 2021 closes, the construction industry continues to cope with cost challenges related to labor, materials shortages and inflation. The average cost increase in 2020 through 2021 was 4.73%, says Julian Anderson, president of industry cost consultant Rider Levett Bucknall, adding that bid construction costs have risen 7.42%.
“Inflation, particularly as it relates to construction materials, is having a significant negative impact on construction starts and leading to delays in projects breaking ground,” adds Richard Branch, Dodge Construction Network chief economist. But he sees supply catching up with demand for many materials in 2022.