Archinect - News

Leveling construction material costs and supply chain relief may signal inflation cooling, new report finds

2023-08-14T16:55:00-04:00

The latest Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics Producer Price Index data indicates that increasingly stable construction materials prices and recent supply chain improvements over the past few months may signal "positive economic outcomes" within the United States, Construction Dive reports.

"Goods prices continue to stagnate in the context of improved supply chains and a sluggish global economy," ABC Chief Economist Anirban Basu explained in the analysis. "It has been the improvement of supply chains that best explains recent positive economic outcomes in the U.S. economy. As supply chains have normalized, unmet demand has been more readily satisfied. That has propelled transactional volume and economic growth."

Image source: U.S. Bureau of Labor Statistics via the ABC (Aug 2023).

"At the same time," Basu continued, "the improved supply chain has helped push prices lower, contributing to the disinflation observable both in yesterday’...

Biden administration imposes 200% tariff on Russian aluminum imports

2023-03-01T11:55:00-05:00

The Biden administration issued another round of tariffs Friday on key industrial goods from Russia — including a 200% tariff on aluminum — as the country’s invasion of Ukraine crosses the one-year mark. Aluminum tariffs were announced in addition to $2.7 billion in new duties on many metals and raw materials from the country. The tariff rates on most metals and metal products will double from 35% to 70% beginning April, and target “a crucial revenue generating sector of the Russian economy”

Russia is behind China and India the world’s third-largest producer of aluminum and ranks fifth overall in terms of imports of the metal into the United States.

Architects and builders have only recently come out from under 25% steel and aluminum tariffs imposed on certain countries by the Trump administration for reasons of “national security” (e.g. economic protectionism).

The tariffs will go into effect on March 10th. White House officials also cited an increase in Russian aluminum imports through much of last year.

Construction materials prices fell a percent in November in recent report

2022-12-12T14:02:00-05:00

According to a recently released analysis of U.S. Bureau of Labor Statistics Producer Price Index data by Associated Builders and Contractors (ABC), construction input prices have fallen 0.9% in November from October readings. Additionally, nonresidential construction input prices fell 0.8% in November.

Though the decline in materials prices is positive news, they are still up nearly 40% since February 2020. Construction input prices are up 11.9% from this time last year, with nonresidential construction input prices 11.5% higher. However, input prices increased in only four of the 11 subcategories on a monthly basis. Natural gas inputs saw the largest decrease in prices, falling 15.8% last month, while unprocessed energy prices dipped 7.8%, and crude petroleum prices declined 2.3%.

Graphic: U.S. Bureau of Labor Statistics / Associated Builders and Contractors

“The decline in wholesale prices for many construction inputs is generally positive news,” said ABC Chief Economist Anirban...

San Francisco planning to build $1.7 million single-toilet public restroom

2022-10-31T11:49:00-04:00

A single-toilet public restroom planned for San Francisco’s Noe Valley Town Square is expected to take two years to build, but it’s already causing a stink. The reason: its $1.7 million price tag.

The proposed restroom would sit within a 150-square-foot enclosure within the town square, located in central San Francisco. While there are no designs for the project available, it is expected to be delivered by 2025. According to the city, the high price tag is meant to account for unexpected costs, including the rise of construction costs due to the pandemic, inflation, and global supply chain issues. This is in addition to being located in the most expensive city in the world to build in. As reported by the Los Angeles Times, San Francisco is also wary of costs from utility company PG&E, which owns the power lines used by the city’s public utility. The company has a history of stalling projects, forcing customers to buy specialized equipment to handle large amounts of electricity.

The project's massive cost and the lengthy timeline were met with outcry, which led California Assemblyman Matt Haney, who secured state funding for the project, to cancel a planned ceremony for the t...

Lucas Museum of Narrative Art opening date pushed back again to 2025 due to supply chain issues

2022-09-22T12:13:00-04:00

The opening of MAD’s highly-anticipated Lucas Museum of Narrative Art has been delayed until the year 2025 over apparent issues in the construction supply chain, according to a report published yesterday in the LA Times.

In an interview with the paper, the museum’s director Sandra Jackson-Dumont indicated that, while construction was still moving forward “in all areas,” an inability to obtain the necessary geofoam filling elements, light fixtures, and elevator components has coupled with existing on-site safety-related delays to bump its debut again by another two years.

The museum’s opening had already been pushed back due to Covid-19 protocols after first breaking ground in 2018.

Previously on Archinect: Delays push back opening of the MAD-designed Lucas Museum of Narrative Art

As ARTNews reported, this is a problem that has also affected the OMA-led expansion of Buffalo’s Albright-Knox Gallery and the $60 million overhaul of the Bruce Museum in Greenwich, CT. Supply chain issues ...

June's NAHB/Wells Fargo HMI shows builder pessimism at an all-time high

2022-06-21T08:30:00-04:00

A new poll conducted by the National Association of Home Builders shows builder confidence in the market for new single-family homes is at its lowest level after six straight months of decline. The poll measures builder perceptions of current and future single-family home sales, and the traffic of prospective buyers. All three categories posted declines in the latest monthly data with buyer traffic falling most sharply, a sign that homebuyers — especially first-time ones — are giving up.

The now-familiar cocktail of increasingly higher interest rates and home prices is once again causing headaches for contractors looking to fill America’s shortage of 4 million homes. The NAHB has been pushing the Biden Administration to take action on the supply-side of the problem since last year, and now says that a 19% increase in the average cost of construction materials will require even further measures be taken in the form of jobs training, tariff rollbacks, and a ban on Russian timber in the hopes of combatting the nationwide problem.

The group's new poll indicates an atmosphere of waned confidence in an industry beset by labor shortages and a string of business failures for the past two years. All three categories of measure reported percentage point decreases of 1 (sales conditions), 2 (expectations), and 5, a record for buyer traffic, which has fallen belo...

Sharon Prince, visionary force behind Grace Farms, on her career-guiding ethical compass

2022-03-23T16:25:00-04:00

“Think about it. First it was food,” she says, referring to the decades-long push for local, sustainable and ethical eating, as well as reliable sourcing and labeling. “Then came clothing. I’m proposing that shelter will be next.” “Our velocity for good has been established day by day.”

Writer Ted Loos visited the SANAA-designed Connecticut retreat virtually for a profile of founder Sharon Prince, a former fashion retail executive who founded the 80-acre venue in 2009 around the five core principles of nature, the arts, justice, community, and faith.

Prince spoke about her collaboration with new American Academy member and Yale SoA Dean Deborah Berke on a project called Design for Freedom that looks to hold the industry into account for support unethical labor practices by creating a database that is exclusive of firms with a known history of dealing with sordid entities at the front end of the building materials supply chain.

Previously on Archinect: SANAA's Grace Farms “River” building wins latest MCHAP

“At Yale, Sharon provided initial support for a new joint course between the architecture school and the law school that traces the role of forced labor in the building supply chain and seeks to eradicate it from the architectural design process,” Berke explained...