You’re probably also wondering why that’s so and if the costs are expected to continue rising. We’re here to answer your questions and provide you with some solutions as well!
Let’s get into it.
Lumber Costs
Many Americans began to notice skyrocketing lumber prices at the start of 2020. This was partly due to the many people looking to renovate or do small projects from home during the pandemic. Since the demand for these products was going up, the price went up as well.
Looking at constructions costs as a whole, we’ve seen a 4.5% increase from August 2020 – 2021. This was a record-breaking increase and the price of lumber and steel has been rising since the government stating collecting data in 1949.
Paint Costs
Lumber and other building materials weren’t the only things going up in cost since the start of the pandemic. The cost of paint has also been on an upswing due to various reasons.
Sherwin Williams, one of the major players in the paint industry has explained the rising cost of paint is due to the raw materials going up in price. The increase of all American paint products started on August 1, 2021, at 7%. Prices went up another 4% in September and we’re likely to see increases coming in 2022 as well.
The CEO of Sherwin Williams, John Morikis, has also explained that there has been a shortage in materials, which was greatly affected by the freezes that were happening in Texas. It has interrupted the supply chain, as well as ruined materials that were sitting in storage.
The owner of Catalina Paints, David Cohn also joined in on the conversation, explaining that his business has been faced with delays and can’t get certain products they’re usually able to get their hands on. Regardless of whether or not these paint companies have a good relationship with their supplier, they’re struggling to get their regular orders and this supply chain issue is likely to continue for months, if not longer.
No one is able to avoid the reality that the supply shortage, along with the rising demand for products will continue to keep paint products at a higher cost for an unknown amount of time.
Labor Costs
As you can probably guess, labor costs have also been increasing as raw materials are going up in price. We saw the same 4.5% increase in labor wages as unemployment rates were up and there was a lack of qualified laborers.
These domestic labor shortages, paired with the supply chain issues will continue to affect labor costs over the next 12 months. They’re estimated to rise anywhere from 3-6%, as Americans deal with new waves of COVID-19.
How Long Will Prices Continue to Rise?
With paint and carpentry costs increasing throughout the nation, there isn’t much you can do. It’s clear that costs will only continue to increase for at least the next year. It’s challenging to estimate exactly when things might start to stabilize but the best-case scenario would be sometime in 2022 when supply chain issues are resolved, allowing for material costs to balance out.
With that being said, no one can be sure how new waves of COVID-19 will affect the United States. While it’s unlikely, if the country enforces more lockdowns, it would only lead to more disruption on a national and global front.
What Is The Solution?
Although there isn’t much that you can do to avoid the paint and carpentry costs increasing, there’s one aspect that’s still within your control. If you’re looking to start painting the interior or exterior of your home, refinish cabinets, or do any carpentry work, it’s always best to go with a professional. When completing a DIY project you’ve never completed before, you’re likely to waste money on excess materials that aren’t needed, along with spending extra time to get it done.
Powell Painting and Home Services provide unmatched services that will save you time and money when completing your next project! Contact us today to get started with a free quote.