Contractors hoped a return to a pre-pandemic materials supply free of logistics bottlenecks would come in early 2022, but then Russia invaded Ukraine.

The construction equipment sector is still working through supply chain issues that bedeviled it in 2021, while an active construction market ikeeps machines in use longer and constrains the flow of used iron into the normal secondary channels.

ENR’s Construction Industry Confidence Index remained steady in Q1, rising slightly to a rating of 61, a one-point bump from the final quarter of 2021. The index had fallen the previous two quarters. 

As the height of the pandemic continues to recede, contractors still face several ongoing issues, including sky-high materials prices and staff shortages. 

The U.S. Commerce Dept. on Nov. 24 followed through with expected anti-dumping and countervailing duties on Canadian softwood lumber, placing tariffs of 17.99% on their imports—more than twice the 8.99% rate imposed during the Trump administration.

The logistical snarls in the global supply chain that have disrupted so many other aspects of construction have put pressure on the equipment supply, which combines with the high level of demand to keep sales and resales brisk.

Over the past year, consultant Currie & Brown’s global construction cost experts have reported consistent market trends and headwinds. Common experiences in all regions were post-pandemic recovery and historic hikes in materials prices.

The fate of federal spending legislation, dubbed the Build Back Better Act, is in doubt after Sen. Joe Manchin (D-W.Va.) publicly announced his opposition on Dec. 19, but President Joe Biden believes it will pass.

The long awaited Infrastructure Investment and Jobs Act has been passed, but construction market confidence has continued to dip among industry executives.

As 2021 closes, the construction industry continues to cope with cost challenges related to labor, materials shortages and inflation.