Supply Chain Issues

Over the past year, HVAC prices have risen continuously and quite alarmingly.

In a matter of months, HVAC upgrades have become almost unaffordable. HVAC isn’t the only affected utility. The prices for a wide range of necessary building costs, including heating and cooling systems, have grown precipitously — with year-over-year increases of approximately 80%.

Supply Chain Issues are the Culprit

Unfortunately, according to one HVAC expert, it doesn’t seem that the inflated prices are going anywhere. Even after we iron out our collective supply chain problems prices will still see inflated prices.

“They can’t make the equipment and get it out as fast as we need it,” said the heating and cooling manager. But, he continued, saying: “I don’t see the pricing of equipment ever going back down to where it was.”

This has resulted in very real financial strain for homeowners across the nation, who find themselves unable to afford routine home repairs. Likewise, building owners and commercial real estate investors find themselves in similarly stressful scenarios.  These scenarios leave many wondering about the true impact of supply chain issues on HVAC, general building costs, and upcoming construction projects.

Here’s How Supply Chain Issues are Affecting General Building Costs

One of the most significant ways that supply chain issues are interfering with construction is simple: It’s very difficult to obtain necessary building materials. Even if a construction firm can get its hands on some lumber or concrete, it is often impossible to rely upon future inventory with any amount of certainty.

Where there are building materials in stock, they’re only available for staggering amounts of money. Since it costs construction firms more to obtain materials, they are charging more for projects. This makes new builds very expensive right now; for many, prohibitively so.

The Lack of Freely-Available Building Materials Isn’t the Only Supply-Chain-Related Issue.

According to the most recent Construction Inflation Alerts issued by the Associated General Contractors of America, wood is by far the material most affected by these price hikes — with costs for lumber up 101% year-over-year. This makes opting for another building material a great choice if you’re looking for ways to invest in construction.

Steel, for example, can be a very economical choice. Why? Steel often requires less labor during the installation process since they often use pre-fabricated structural components. Steel is also really easy to maintain. Unlike wood, for example, steel doesn’t need to be treated for infestations or rot.

And, as a bonus, a well-insulated steel building is very energy-efficient. As a result, it won’t require much heating and cooling. Which, right now, with hiked-up HVAC costs, can be an incredible perk.

Need Help Navigating General Building Costs? Interested in Steel as a Strategic Construction Material?

Supply chain issues are, it seems, here to stay. So when considering investments that can help you enjoy as much added value as possible, it’s ideal to pick a building material with similar longevity.

At Peak Steel Contractors, we’re firm believers in the efficacy and efficiency of steel for new builds. Contact our Georgia-based team today. We’ll help you design a steel building or plan to update any of your existing structures. In the meantime, check out our gallery of past projects to see what we can do!