It seems like our executive branch is playing a baseball game with the tariffs. Everyday is like a replay of the old Abbott and Costello, skit “Who’s on First.” The White House promised to restore a true 25% tariff on steel imports and elevate the tariff to 25% on aluminum imports, eliminating the loopholes that …
In the last couple of weeks, the new administration has announced a slew of changes that will likely impact the construction industry. We are trying to keep a watchful eye while realizing that some of these initiatives might get pulled back before they become reality. Sometimes it’s senseless worry to worry too soon. For several …
Since the pandemic hit, it seems like construction materials and costs have been the number one topic of conversation for anyone involved in our business. Is what we need going to be available? If so, how much have prices gone up? We’ve talked about several headaches it’s caused our team, including parts shortages for electrical …
A few months ago, I shared what we were seeing with electrical switchgear and the electrical slowdown that we had been facing. In summary, electrical panels were trickling in late, often missing components. Most of the time, there was only a simple note from the shipper that said something like, “This product is missing components.” …
While we believe the supply chain is getting better, and we are turning a corner with shortages of construction materials, several on our team have been faced a new challenge this week regarding electrical panels. It seems that electrical gear, breakers and panel boards are running a 6-8 month lead time. GFCI breakers are averaging …
This may not be the sexiest post, but I think it’s one that is close to all of our wallets. We have been working toward getting a really cool adaptive reuse project started, converting a steel plant to mixed-use space with offices and restaurants. Once again, commodity pricing is an issue, steel in particular. Our …
In the real estate world, commodity pricing is a hot conversation. There was a point this year that dimension lumber was up about 300%, with a bright spot that it’s now back down to summer 2020 prices. Plywood and OSB have been a bit more stubborn. Copper is up 43%. In steel, deck and joist …
While the CPI has risen about 5% over the last 12 months–the highest increase in decades–the 30-year T bills are hovering just north of 2%. One has to wonder why folks outside the construction industry are not more concerned. Someone explained it to me like this: Have you ever been to a football game and …
This week was my first trip on a commercial flight in 15 months, and it sure did feel good. I traveled to Denver to meet up with my FMI peer group, which consists of construction leaders from around the country in non-competing markets. We meet twice a year to discuss what we are seeing and …
As the wild ride of 2020 comes to a close, I’m hearing a lot of talk about what the economy might look like next year. I don’t have a crystal ball, but the Fed appears willing to keep the rates down in the less-than-1-percent range and let inflation run wild for a bit north of …
We are seeing cost increases across all platforms, although they seem to be tapering off compared to the 5 1/2% increases we saw last year. This contrasts the pressure of revenues, which aren’t keeping up. Sometimes it all works out. Other times it doesn’t. This week, I had a cost management conversation with a potential …
From time to time, I am asked how we manage to build projects in multiple states, often a long way from here, and how we have been consistent for 35 years. The answer is pretty simple: We have developed a group of traveling subcontractors and vendors who we trust. In return, they trust us. The key …