COVID, Conflict & Costs: What the building & construction industry needs to pay attention to.

COVID, Conflict & Costs:  What the building & construction industry needs to pay attention to.

What can we learn from the 1980's?  The Cold War, commodity price inflation & the resulting double digit interest rates had a devastating impact on the housing market.  Is this starting to sound familiar?

Higher fuel prices, 20% material costs increases & logistical disruptions throughout the supply chain ARE impacting our businesses.  Prices are significantly higher than they were 2 years ago & many suppliers continue to be short inventory, signaling even higher prices on the horizon.

Recyclean, Inc. is a deconstruction company, not a market analyst, but here are a few market indicators we will watch that could signal a turnaround in this bull market for building & construction.

  • Lumber Prices:  Wildfires, wood-boring beetles and/or just flat-out strong demand have driven prices higher BUT if inventories recover & prices soften, we will be closely watching if the reversal is driven by softening demand.
  • Income Tax Rates:  Although the impact of income tax changes is often neutral for deconstruction (high tax rates, better impact of donation write-offs, lower tax rates, increase demolition & construction activity), higher taxes do reduce consumer spending & that certainly impacts the industry.
  • Mortgage Rates: 30-year fixed mortage rates haven't exceeded 10% since around 1990.  What will happen to the housing market if today's challenges result in a rapidly increasing borrowing expense for the average consumer?  

Let's be clear, today's market is great!  Everyone is busy & we anticipate that to continue BUT we refuse to let the lessons of the past be forgotten & will keep a keen eye on positioning deconstruction for tomorrow's market. 

Whether it's saving discarded materials for affordable resale by our charitable partners during tough times or scaling to meet the demolition needs of a booming market....

Recyclean, Inc. is your best source for professional, safe, on-time, and on-budget deconstruction services!