Page 24 - Green Builder Nov-Dec 2021 Issue
P. 24

PART 2



        Alternative                                              For the construction sector, the past year can be summed up with
                                                                 two modified statements: If you don’t have it, you can’t build it.
                                                                 If you don’t build it, they won’t come. Thanks to the pandemic,
                                                                 builders have seen a lot of the former en route to the latter: Higher
        Systems                                                  prices, materials shortages and workforce problems have the
                                                                 industry searching for other ways to get the job done.
                                                                   The effort has given insulated concrete forms (ICFs), struc-
        Rising                                                   tural insulated panels (SIPs) and other energy-efficient struc-
                                                                 tural systems a tremendous boost. But not every material shift
                                                                 moves the needle toward greater sustainability. Replacing wood
                                                                 with steel framing, for example, infers the need for additional,
        Shortages of lumber and other                            CO2-intensive insulation or other methods to achieve a thermal
                                                                 break, to compensate for steel’s extremely high thermal transfer
        construction materials offer a                           characteristics. It’s not just an easy swap.
                                                                   It’s a complicated situation, one that’s going to be a headache
        golden opportunity for other ways                        for a while longer. Data indicates that some construction sup-
        to build a home.                                         plies will remain tight until at least next summer. Meanwhile,
                                                                 all anyone can do is plan carefully.

                                                                 THE CONSTRUCTION SECTOR: CHALLENGES TO OVERCOME
                                                                 Going into 2020, experts presented a familiar slate of prob-
                                                                 lems facing builders. These included lumber costs, which were
                                                                 expected to rise (again); materials that were harder to find; and a
                                                                 workforce that would continue to shrink. More than 80 percent of
     Limited                      LACK OF SKILLED LABOR          builders surveyed by COGNITION Smart Data cited these chal-
                                    LABOR SHORTAGES/
                                                                 lenges as being the items they have been and will be struggling
                                                                 with while doing business.
     options.                           33%                      ducted last May, 90 percent of respondents reported shortages
                                                                   In a survey by the National Association of Home Builders con-
                                                                 of appliances, framing lumber oriented strand board (OSB), and
     Labor and construction                                      plywood. Eighty-seven percent also cited shortages of doors and
     materials are the biggest                                   windows; 50 percent reported shortages of steel beams, insula-
     obstacles faced by builders                                 tion, roofing materials, vinyl siding, copper wiring, and plumbing
     as they try to go about their                               fixtures, among other materials.
     daily business.                                               Deepa Raghavan, a housing market analyst for Wells Fargo
                                                                 & Company, doesn’t find the numbers surprising. But they are
     SOURCE: COGNITION SMART DATA
                                                                 frustrating. “It used to be like Whac-A-Mole, where you would
                                                                 whack one thing and another one would pop up,” Raghavan said
                                                                 in a report from the Wall Street Journal. “This is like six of them
                                        UNRELIABLE               coming out and you can only whack two at a time.”
          ACCESS TO BUILDABLE LOTS     CONTRACTORS
                  3%                       16%                     Builders have been forced to seek new suppliers or alternative
                                                                 products, sometimes  with mixed results. Delivery times
   HIGH INSURANCE COSTS                                          have been delayed, with many builders being forced to place
          3%                                                     orders without concrete dates or prices. These delays disrupt
                                                                 construction schedules, which costs builders time and money,
                                  HIGH MATERIAL COSTS
   STRINGENT CODES                     12%                       leading to increased costs for consumers. That, in turn, has priced
        5%                                                       2.1 million U.S. consumers out of home ownership.
                                                                   Straub Construction in Shawnee, Kansas, changed insulation
                                    OTHER                        materials when its usual supplier couldn’t fill the order. The
        ACCESS TO CAPITOL
             6%                     12%                          switch added $20,000 to the project’s cost, but it was better than
                                                                 delaying things by six to nine months before the original product
                                                                 arrived. “It’s unprecedented,” company president Parker Young
                  RISING CONSTRUCTION/                           said in a report from the Wall Street Journal. “I’ve been in the
                     LABOR COSTS                                 business for 30 years and never seen anything like this.”
                        9%                                         Nor has Greg Sizemore, vice president of workforce development


            22   GREEN BUILDER November/December 2021                                             www.greenbuildermedia.com
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