The pandemic has resulted in major disruptions all across the world, with the most affected category being the building and construction industry. With a combination of global supply chain delays, hyperinflation and limited building materials being supplied, we are witnessing something that is unprecedented in our lifetime. In this article, we’ll look at why the cost of building supplies has increased and how it’s impacting our daily lives today.
“Data shows that over the past year - structural timber, plywood, steel reinforcement and structural steel costs have all increased by more than 25%.”
With new builds and renovations still in great demand than ever before, we are witnessing the real impact of building supply shortages since the pandemic began. The elevated costs of buying timber and other building materials such as steel, concrete and aluminum has put a massive strain on local suppliers, causing significant financial hardship on businesses Australia wide.
If we turn back time to the days of Jobkeeper and government handouts, the majority of people in lockdown spent a good portion of their income fixing up their homes - with DIY projects being a vastly popular past time. Eventually, this huge surge in home renovations quickly caught up with us resulting in visible shortages of building materials everywhere. Moving forward, it seems that soaring prices is the ‘new norm’ these days and unfortunately it doesn’t appear to be easing in the very near future.
If we factor in rising demand for home renovations and construction projects, staff shortages and exponential delays along the supply chain channel, we have the perfect recipe for inflationary pressure, which inevitably results in a shortage of building material supplies.
According to the Bureau of Statistics, almost every category of building materials has risen in cost – with structural steel products leading the way at a whopping 40%. These figures are clearly driven by global supply constraints, ultimately forcing demand to slow down – if not coming to a compete halt. Furthermore, the war in Russia has also exacerbated the situation, which has resulted in major shortages in timber to Australia. Given that we source much of our timber from Russia, the blocks to importing has been significant. This has also contributed to the increased cost of building supplies as a result of higher demand.
As for the local timber industry in Melbourne, many tradies are inundated with work from existing clients and don’t have the resources to take on extra projects. This has caused major delays across a vast range of residential and commercial jobs and has been nothing short of frustrating for many customers.
Hopefully, this will change and we start seeing some light at the end of the tunnel. At Premier Picket Fencing, we stock a range of building supplies and products to create the most beautiful and traditional picket fences. As a one-stop-shop for all your fencing, gate, arbour and awning needs, we pride ourselves on being the leading supplier of timber products in Melbourne.
For more information on our services, please call our team on 0412 686 704 or drop us an email at: peter@premierpicketfencing.com.au and we’ll get back to you asap.