Are Supply Chain Problems Affecting New Home Construction?

While many believe port logjams and a shortage of truck drivers are at the crux of the supply chain problem, in reality it’s been a sequence of events converging at just the right moment to create a myriad of factors that are generating global supply chain concerns.

Part A must be available to complete step B.

Constructing a new home is a major undertaking. From foundation to roof, electrical to plumbing, walls to flooring, there are literally thousands of parts necessary, with many of these elements dependent on other systems being completed before they can be installed. Some of the hardest hit components include lumber, kitchen appliances, insulation materials and rebar. These are essential parts, that when delayed, ultimately can cause tsunami like waves across the entire construction process. 

Is it really all supply chain problems? 

That depends on your definition of the supply chain problem. Yes, there are issues with key U.S. ports being overwhelmed. And yes, there is a shortage of truck drivers. But the United States is also experiencing unprecedented growth in new home construction and many manufacturers have been unable to keep up with the demand for materials. For example, while tariffs placed on Canadian lumber were reduced in December 2020, the ongoing housing boom has seen costs skyrocket once again due to supply and demand.

Covid has wreaked havoc on the construction labor force. Many are simply too ill to work or are having to step away in order to become caregivers for those facing devastating health problems from long Covid. Others believe the time is ripe to stand up for better pay and working conditions and are going out on strike or permanently leaving the workforce.

When will it end? 

Analyst Simon Heaney with Drewey Shipping Consultants isn’t overly optimistic about 2022 as Covid vaccine requirements continue to disrupt global shipping operations around the world. Jennifer Bisceglie, CEO of Interos, and an expert on supply chain risk, is a bit more upbeat and believes we will begin to see some positive movement in the second half of 2022. But the overall general consensus is the future is still and will continue to be governed by unpredictability. 

Partnering with Carolina RES for all your real estate service needs in 2022 is a predicable way to ensure a surprise free home buying or selling experience. Call 864-242-1099 to schedule a home inspection or interior air quality test. Or use our safe and convenient online form to order an appraisal or request a termite letter.