Volatility in Material Pricing & Supply Chain: How Does it Affect Your Budget?

*Updated November 10, 2021


If you’re ready to start a new custom home, home addition, or remodel, you may need to deal with the ongoing fallout from the coronavirus-related economic shutdown. That means working with your builder to mitigate its impact.


The problem, as we all know, started in the United States in March and April of 2020. Some states and localities halted all construction, and homebuyers in other areas canceled or postponed their projects. The sudden drop in demand led to plant closings throughout the building supply chain, from lumber mills to window, door, and appliance manufacturers.


As the population of the Scottsdale-Phoenix area continues to grow, with Phoenix now named the nation’s 5th most populated city, the squeeze of the demand against the supply of homes or materials and homebuilders was acutely felt. According to KTAR News, Phoenix is about 25,000 short when it comes to single-family homes and it will take years for homebuilders to catch up to demand. 


Now, more than a year after the shutdown, we are still facing the rippling effects. Material prices, order lead times, and available options are inflated, fluctuating, unpredictable, or flat-out unavailable. 


The only way to determine how these issues will impact you and your project—and what the proper response should be—is to discuss them with a professional builder.


At ArDan Construction, we are acutely aware of the current volatility in materials pricing as well as the delay in the supply chain and are taking action to mitigate the impact of the volatile landscape for our clients. 


While lumber prices have been going down since August 2021, we’re still seeing inflated costs and extended wait times on cabinets, flooring, appliances, and fixtures in Q4 2021 and expect that to continue into 2022.


Here are the actions we are taking and solutions we are creating to mitigate the impact: 

1. Pre-Construction Agreements

Pre-Construction Agreements, an integral piece of our process pandemic or not, take into account the updated price of materials so that you can understand the cost upfront rather than face surprises later on in the process.

2. Lock it in

As soon as your Construction Contract and project plans are in place we will order materials to lock in the best price and ensure that materials will be at the job site, ready for use as soon as we are ready. Those looking to DIY or builders who did not plan accordingly will most likely run into astronomical prices or lack of product altogether. 

3. Planning = Smooth Process

When working with a general contractor on your home improvement project we always recommend working with someone who does extensive planning upfront. This has never been more important. By planning the project ahead of time we will be able to avoid challenges and surprises while the project is in progress. Being proactive rather than reactive is a win in nearly any situation! 


The reality of the situation is that the price of materials is changing by the day and the supply chain is having a difficult time keeping up. This is a pattern we expect to see for the foreseeable future. That being said, when you work with a seasoned professional who understands the industry and the building process your project can remain on time and on budget. 

Your Home Remodeling Contractor

If you’re ready to transform your home with the help of a contractor, the team at ArDan Construction is here to listen. There’s nothing to lose and everything to gain when you employ our home remodeling team. Get in touch with us to discuss your project.