How This Period of Extreme Inflation Affects Us All (especially construction!)

Hello,

First off, nerd alert. This is a mathy/numbers article. You've been warned!

I don't know if you have been following inflation over the last year or so. If you have then you know why we think it's important to bring up. If you haven't then this little piece we are sharing with you might help explain why everything feels so much more, well, expensive. Guess what? It is!

We have seen the all items index rise 6.8 percent for the 12 months ending November 2021, the largest 12-month increase since the period ending June 1982. Let's just all pause here a minute and let that sink in.

If you are interested in this report from the Bureau of Labor and Statistics you can click here and check it out.

Additionally, overall construction costs for the 12-month period through the end of August 2021 rose by 4.5 percent, with material costs leading the way with a whopping increase of 23.1 percent. Yikes. The increases in the prices of lumber and steel, for example, are the largest seen since the government began recording the data in 1949. You can check out the article on construction costs here. It has some interesting predictions as well.

It is our belief this bubble won't be bursting any time soon. So if you have a cash stash for your construction project, get ready for the value your cash to go down and the cost of your project to go up.

Clients who have been putting off pulling the trigger on getting their projects rolling need to know that costs are rising daily. Having a builder and a design team that helps you move quickly can make a huge difference. We are here to make this happen.

Anyways thank you for reading. Please keep us in mind for any of your upcoming projects,

The Kellow Construction Team