Material Pricing: What You Need to Know

NOTE: This information is current as of June 29th 2021.

Picture this: you’re a business owner looking to expand your enterprise, and in most cases, that means construction is on your horizon in some shape or form.

Unfortunately for this year, pandemic-related supply chain issues have ravaged the construction industry worldwide, ultimately grinding the production of raw construction materials you need to a halt.

But now that our world has learned to cope with the pandemic, the construction industry is back on the rise, and with it, the demand for these materials. Now to those reading this in the construction industry, this is nothing new. However, the people who work in industries that are intertwined with ours, i.e. commercial real estate, this is something that may not be on everyone’s radar.

To help educate the minds who aren’t fully submersed in construction, we’ve put together this short list of tips to remember when aiding and/or managing your clients’ construction endeavors.

1. Don’t underestimate the power of projection. It’s so important that the budget accurately reflects the current market AND takes into account the possibility of future spikes. Thankfully, CCB has the ability to lock in pricing for a set period of time even if the market continues to change. Here’s some recent stats that will give you an idea of just how much material pricing has skyrocketed:

   • LUMBER – in the last week, prices have stabilized from $1,700 in early May to just under $900 for 1,000 board feet of lumber, but this is a far cry from what prices were 2 years ago (around $350).

   • STEEL – As the leader in rising prices for major commodities, steel is up over 50% since last year due to the shutdown of production in the early part of the pandemic. Prices are more than likely continue to rise for another quarter and should also expect lead times of more than 4 months.

   • DRYWALL – similar to lumber, drywall prices have also stabilized but are still up almost 7% after seeing above average volatility in the second half of last year. Expect to see similar rates with other gypsum products as well.

2. Don’t feel like you should wait for prices to drop. Despite all the increases in material cost, CCB still has many ways in which we can save money. Accelerating or phasing the project schedule and exploring alternative material options are just a couple of ways that we do this.

3. Know your lead times. It’s one thing to know how much you’ll end up paying for material. Knowing when exactly you’ll get it to the jobsite is an entirely different thing. That’s why it’s so important to be aware of long-lead items and tweaking the construction schedule to coincide with material delivery. CCB has been doing this for decades and has helped our clients flourish by optimizing the schedule and bringing them value in unexpected ways.

4. Look on the Brightside. Just recently, multiple sources within the industry reported that lumber prices are expected to go down by the end of summer. Manufacturers expect their back stocks to get back on track as well, which will bring the market back to level by the end of the year.

If anything, the last 18 months have taught us all one thing – and that is the importance of working with a contractor who is dedicated to bringing you the best value. We understand that construction can be scary during this time, but don’t let that deter you from Building Your Vision into Reality!

Not Your Everyday Contractor...

People often ask me how I got involved with construction, and I tell them – I was born into it.

My grandfather was a general contractor, my father was a general contractor, and I went to the Construction Engineering and Management Program at Purdue University – so it’s really all I know and what I’ve been doing all my life. I enjoy it immensely, which is why I continue to do it after all these years.

This morning I received a call from a potential client that wanted to talk about renovating a building. Now, were they looking for someone who was the least expensive contractor to do the job? Or were they looking for a construction professional who would be their partner, help them make decisions through both the design and construction phases, and offer the best value for their construction dollar? The answer to these questions determines if CCB is a good fit for their project, and if their project is a good fit for CCB.

After discussing project specifics with this individual, I concluded that they were ultimately looking for a “just get it done” contractor – which is perfectly fine – but I had to tell them that CCB just wouldn’t be the best fit for their project.

Now some people will read this and think “he just turned down a job,” but I went on to explain to him that CCB is in the business of being a true construction partner. This individual was in the market for a “just get it done” contractor, and that just isn’t CCB. We like to view ourselves as part-time construction professionals on our clients team – a team that not only can guide our clients through all phases of construction, but a team that’s also there for their future endeavors.

A friend of mine once told me that you can realistically deliver only two of the following three things during a construction project: impeccable quality, low cost, and timely completion. It is virtually impossible to have all three, and if you value time and quality as much as we do, then naturally we may not always be the lowest cost contractor – but we will bring you the best value.

If you think CCB is the right teammate for you and your construction needs, let’s have a chat!

Women in Construction

This year we’ve celebrated national Women in Construction Week, Purdue University’s #4 nationally-ranked graduate School of Engineering – both of which were highlighted on our social media pages – and Purdue’s #9 nationally-ranked undergrad School of Engineering. As president of Charles C. Brandt Construction and a Purdue engineering graduate, I’m grateful for the opportunities I’ve had in the construction field, and want to be a voice for my chosen profession and an advocate for encouraging women to pursue an education in this traditionally male dominated industry.

Ladies, you’re NEEDED and WANTED in the construction world, and you owe it to yourself to spend some time learning about the various roles available. One of them might be the perfect fit for you!

In 2019, Purdue released enrollment figures for the School of Engineering where women represent only 26% of total undergraduate students. Ag, Bio, Environmental & Ecological disciplines led the way at over 50%, while Construction Engineering was near the bottom at 19%. Purdue’s Women in Engineering Program (WIEP) was established over 50 years ago, and has increased women’s participation in the school from less than 1% of enrollees, to the current 26%. That’s huge progress, but we can and must do better!

The National Association of Women in Construction – the sponsors of the annual Women in Construction Week – state that only 10.3% of entire construction workforce is women, and less than 1% of the front line / job site workforce is women. Considering that women make up 47% of all employed individuals, we have a long way to go.

My construction career started with internships while still a student at Purdue, to my first post graduate job here at Charles C. Brandt as field engineer. I moved to Project Manager, then Director of Project Management, then to my current position as President. Along the way, I’ve learned so much from so many people from every walk-of-life you can imagine – company owners, CEO’s, architects, real estate investors, other engineers, field force, and every teammate at CCB – and every person I’ve encountered has prepared me for today and beyond. My career has been a completely new education in addition to what I learned in college, that education is still ongoing, and I wouldn’t trade it for anything.

Math isn’t your thing? That’s okay, you don’t have to be an engineer to join our team. Last month in a shared social media post celebrating Women in Construction, we listed the names of ten women on our team. The positions they hold – all critical to our success – include senior staff accountant, company president, project assistant, administrative supervisor, staff accountant, project manager, and field laborer. There is literally something for everyone, and CCB is ALWAYS hiring good people to join our team.

For more information about Purdue University’s WIEP, use this link: https://www.purdue.edu/wiep/index.html

For more information from NAWIC, use this link: https://www.nawic.org/nawic/Career_Center.asp

If you have further interest in discussing opportunities, or any questions about my experience in this industry, please contact me through the link below. Thank you!