The best demolition companies in Oregon know that the demolition and construction industries are two sides of the same coin. What happens in one will always affect the other. So today we are going to look at some of the challenges facing the construction industry in 2021.
Unsurprisingly, most of these challenges originate with the ongoing development of the global pandemic. Last year we took a look at the potential state of the industry in 2021, in this article. Today we’ll look to see how the year has played out so far.
2 Challenges Facing the Construction Industry
1. Construction Materials Raise in Price
Supply chains for nearly every industry were affected by the coronavirus lockdowns. While the United States does not seem poised to implement new lockdowns, other countries have implemented new lockdowns to deal with the spread of the Delta strain of the coronavirus.
Each of the lockdowns has impacted the availability of construction supplies, causing the price of construction materials to increase in 2021 compared to 2020. Three of the most important materials that have been impacted are iron and steel and softwood lumber.
Iron and steel increased in price by 15.6% between January 2020 and January 2021, and softwood lumber saw an increase of 73% in price over the same period. This dramatic price shift in softwood lumber has had a major impact on the residential construction sector, as the material is used for framing houses.
Construction companies and commercial demolition contractors would be wise to investigate how asset recovery might become a new source of revenue. At Elder Demolition, we offer a wide range of asset recovery programs that aim to divert construction materials away from landfills. For example, scrap metal recycling and concrete recycling can be a way to offset some of the costs associated with demolishing and rebuilding.
2. Low Employment in the Construction Industry
The lockdowns created a sudden reduction in C&D demand, as only projects deemed critical were allowed to continue, leaving the entire construction industry in the lurch. Because of the slowdowns, many projects were paused or canceled in 2020, which led to mass unemployment and even workers who did not want to return to the industry when they had the opportunity.
According to Associated Builders and Contractors, the industry has recovered over 70% of jobs lost, but harsh storms in February 2021 further disrupted projects as large scale blackouts swept many parts of the United States. This resulted in a loss of 61,000 construction jobs in that month alone.
The C&D Industry Turns to Tech to Tackle Challenges in 2021
Regardless of the challenges faced, the C&D industry has embraced solutions to help navigate these new waters.
For example, because of the need for social distancing, many construction and demolition companies have turned to cloud-based file sharing and videoconferencing in order to accommodate new distancing requirements. This has resulted in some construction and demolition companies realizing new value as some processes became more efficient.
Innovative construction technology (or contech), like wearable sensors to help with worker safety and drones to quickly survey high risk sites, are other solutions the C&D industry is turning to to compete in a tough market. Using these developing technologies has given some construction and demolition contractors an edge over the competition by allowing them to optimize their various processes. Another example is using BIM software to optimize usage of valuable construction materials.
Top Demolition Contractor in Oregon, Washington, and Idaho
If you are looking for the best demolition company in Portland, Oregon, Elder Demolition is at your service. With a reputation for excellence in Oregon, Washington, and Idaho, Elder Demolition offers a number of industrial demolition services in addition to our wide range of commercial demolition services. We look forward to helping you. Contact us today.