Home Indeed Blog

Home remodeling blog from Home Indeed in the Cedar Valley, IA. Home design, renovation inspiration, and more!

How Supply Chain Bottlenecks Impact Your Construction Project

Since the pandemic began, supply chain bottlenecks have impacted just about every community and industry in the country. First, it was toilet paper, sanitizer, and disinfectant wipe shortages; then the Suez Canal blockage disrupted global shipping; and, most recently, concerns over holiday gift supply and deliveries are dominating the news. 

How Supply Chain Bottlenecks Impact Your Construction Project

The home-building industry has not been spared from these complications; it’s faced remodeling supply and building supply shortages, a cabinet and window shortage, a labor shortage, and so on. On top of that, prices for materials and labor have shot up. 

You deserve to know what kind of an effect these supply chain issues could have on your project, whether you’re building a new home, changing your floor plan, or doing a simple remodel. Keep reading to learn about what’s happening to the supply chain, how it could impact you, and what Home Indeed is doing to provide customers with an excellent experience despite these global challenges. 


The Challenge: Low Supply, High Demand 

At its core, the problem is simple: there’s a high demand for new homes and the materials used to build them, but there isn’t enough supply to fill that demand. Why isn’t there enough supply? That’s where things get a little more complicated. 

Since the pandemic began there’s been a host of disruptions in the home-building industry’s global supply chain. Port congestion in Asia delayed deliveries, a semiconductor shortage has made appliances hard to come by, and U.S. labor shortages, in addition to heavy storms in Texas and Louisiana, have slowed manufacturing. 

Furthermore, having a low supply means people are willing to pay more to get those materials. According to the Bureau of Labor Statistics Producer Price Index, the average price of goods in residential construction has risen three times faster in 2021 than the core rate of inflation. 

To summarize, home builders are facing a shortage of materials, a bottleneck in the supply chain, and increasing prices. 


The Impact: How This Affects Your Project

So, what does all this mean for you? In short, potential delays and price increases. It’s possible the timeline of your project may have to be extended until the necessary materials arrive. But if you’d rather not wait, you may be able to purchase an alternative material, though it may cost more money. 

These statistics from the May 2021 National Association of Home Builders and Wells Fargo Housing Market Index Survey show what material shortages are impacting builders and, by extension, your project:

  • More than 90% of builders report shortages of framing lumber.
  • 90% of builders faced shortages of plywood and 87% cited door and window shortages. 
  • 95% of builders reported an appliance shortage — that is the highest shortage percentage recorded on a single item since the NAHB began collecting data in the 1990s. 
  • 63% of builders reported a cabinet shortage in 2021. 
  • The number of builders experiencing shortages increased at least by 27% over the past 11 months for all 23 building materials included in the survey. 

Knowing this, you may want to spend some time considering what the right materials for your home are. You can also take a look at our kitchen and bathroom remodeling cost guide to better understand the cost of materials. 


The Solution: What Home Indeed is Doing to Help

As challenging as this time is for the home-building industry, Home Indeed is still focused on providing customers with the best experience possible. 

We’ve changed our process to account for supply chain shortages by ordering all the materials and finishes for a project immediately after the design agreement is finished. Additionally, we’re committed to being transparent and communicating any anticipated issues with our clients as soon as they pop up on our radar. One of the advantages of working with a design-build remodeler, like Home Indeed, is that combining design and construction into one streamlined process makes communication much simpler!

Please don’t hesitate to contact us with any questions or concerns you may have about supply chain shortages or our services. Our promise to our customers has always been — and continues to be — making your construction experience extraordinary and prioritizing what matters most to you! 


Consultation CTA