Indoor Practice Facility

[1998braves64]

The supply chains in construction are totally fucked right now. We're constantly dealing with products not showing up because of some upstream problem. We have a 68-unit apartment building trying to wrap up construction but half of the refrigerators haven't shown up yet even though they were purchased in November. We're also seeing absolutely incredible increases in construction cost, particularly in the material cost. Some wood products are at 5x what they were 18 months ago. It is all in the logging, milling, processing, and shipping. The guys that own the forests aren't making more per stump.

Steel is getting much worse as well $ costs and supply. Don't know if this has steel joists/decking imagine there is at least steel decking but those have lead times well into 2022 (joist we've been told by all suppliers are a year for orders placed right now).

Sent from my Pixel 3a XL on a bullet train from Hillsboro.

[HerdBot]

The supply chains in construction are totally fucked right now. We're constantly dealing with products not showing up because of some upstream problem. We have a 68-unit apartment building trying to wrap up construction but half of the refrigerators haven't shown up yet even though they were purchased in November. We're also seeing absolutely incredible increases in construction cost, particularly in the material cost. Some wood products are at 5x what they were 18 months ago. It is all in the logging, milling, processing, and shipping. The guys that own the forests aren't making more per stump.

Not trying to be political.. more economics but..

Low interest, unlimited money printing (under 2 administrations) , people sitting home for 9 months, border closings rising oil prices and the fact we don't produce stuff...

[bisonaudit]

Well at least wood is only 240% higher now than 14 months ago instead of 300%. Lol

That’s not quite how percentages work. Lol.

[23Bison]

Oh I know. It just sounds so stupid that lumber prices went up 300% in the first place.

[bisonaudit]

Oh I know. It just sounds so stupid that lumber prices went up 300% in the first place.

It pretty crazy! At the risk of getting this wrong now, if we start at $1 and increase 300% that’s $4, then decrease 60%, we get $1.60. Which is still UP 60% from where we started! In any other environment a 60% increase would be shockingly large.

[23Bison]

It pretty crazy! At the risk of getting this wrong now, if we start at $1 and increase 300% that’s $4, then decrease 60%, we get $1.60. Which is still UP 60% from where we started! In any other environment a 60% increase would be shockingly large.

Absolutely. I bought an untreated 8’ 2x6 about 3 months ago. It was $29! I almost asked if they could cut it in half for me since I only need about 3’ of it.

[reformedUNDfan]

scarcity is always very profitable for someone

[23Bison]

scarcity is always very profitable for someone

I thought about selling the remaining 5’ for $20. Lol!!! Don’t try to low ball me, I know what I have.

[OrygunBison]

Steel is getting much worse as well $ costs and supply. Don't know if this has steel joists/decking imagine there is at least steel decking but those have lead times well into 2022 (joist we've been told by all suppliers are a year for orders placed right now).

Sent from my Pixel 3a XL on a bullet train from Hillsboro.

It's everything that is more expensive. Wood was not 300% more but 400% more, with the exception of roof trusses and floor joists which were about 250% more. Insane. Those numbers are starting to soften but they won't be getting down to the pre-inflation numbers.

I've heard (not hard research by me but rather just scuttlebutt from my jobsites) that one of the biggest parts of this problem is the actual shipping itself. Apparently, the online shopping industry is paying drivers very well and pulling them away from the kinds of shipping that makes our project work efficiently. Again, not sure if that is accurate but it makes sense to me that it could be a part of the problem. Perhaps future drone deliveries will help...

Regarding steel, the IPF is primarily a steel building. In fact, it looks to me like a modified pre-engineered steel structure with long span 3-hinge trusses...at least in one of the older renderings. I haven't worked on a pre-engineered steel building recently so I don't have any direct insight as to their cost increases but if the logic of steel trusses applies, the increases are significant.

One additional things that is happening is that the subcontractors are not signing guarantees on their material costs. Everything is now with a caveat that if the suppliers raise their prices, the sub will do the same. Nothing is guaranteed anymore, which is a very hard thing to manage during construction. We're advising our clients to hold a 15% construction contingency now, which is bonkers.

FYI - my information is the condition on the entire west coast. It generally costs a good deal more to build out here so I don't know exactly what would apply to a project in Fargo.

[tjbison]

Well at least wood is only 240% higher now than 14 months ago instead of 300%. Lol

Math is hard I know...