I’m going to wait till prices come down.

This statement (or something like it) is something we all have said when we feel prices or costs are making us feel uneasy about a current or future project. The truth is, the current prices are something that we, as consumers, may need to try to understand.

As our world changes, just like everyone else, we as contractors, are subject to price changes that are beyond our control. Like, Fuel prices, Federal  wage increases, materials and their availability, shipping costs, and  both direct and indirect labor costs, all of which directly impact the sales price of a project.

Direct costs for materials like concrete/copper/steel/plastics, etc. are all on an upward cost trend, and although these prices fluctuate they are definitely trending up. Lumber, however seems to have stabilized for the time being.

Skilled workers and tradesmen are currently in short supply, and many companies are paying higher labor costs than expected. Families need more money now than ever to survive, with the average tradesman earning about $25 dollars an hour, plus the labor burden, companies are having to charge more for their time.

There are always other costs too, like lease/shop space rent, building permits, development fees and insurance; Liability, Workman’s compensation, Auto/Truck, and business insurance are costs that never seem to decrease.

In short, the building/construction businesses are no different from the corner grocery store, shoe store, car dealer, the local gas station or any other business costs are going up.  We are paying more for skilled labor than ever before, and the cost of being in business is reaching an all time high, yet true profits to sustain that business are harder to come by. There has to be a profit to be made or the business will not survive. If the business doesn’t survive neither does any jobs supported by the business, or any warranty associated with past work.

What to take away from all of this? Depending on your personal and financial situation, NOW may be the perfect time to move forward with your project … It’s probably not going to get any cheaper than today.