It’s no secret that across the world, there are supply chain issues. From grocery stores to auto parts, and yes, even construction, sourcing supplies for basic needs is proving more difficult than many have ever experienced. It’s clear we need to build serious resiliency into how we source and construct new buildings. Equally important, we urgently need an industry wide initiative to attract, train, and retain new construction professionals if we expect to sustain strong growth at every level.

Collectively, these supply chain issues make the jobs of current construction professionals considerably harder. Coming out of 2020, construction in 2021 largely consisted of playing catch-up. Backlogged projects filled calendars, ramping up construction for a recovery. But, as the entire world navigated shortages of even the most basic materials, “recovery” looked different than many had hoped.

Throughout the year, Dodge benchmarks the construction economy using two measurements: the monthly starts value, and the Dodge Momentum Index (DMI). Construction starts measure the value of projects across the US each month. The DMI is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. Together they tell the story of the construction industry as a whole.

Entering 2021, many hoped for a quick and immediate rebound from the drop-off every industry experienced in the throws of the pandemic. The DMI hinted at an initial rebound with a 3.1% increase over January.  But starts showed that, while building was occurring, projects were smaller with a 4% value decrease.

Exiting Q1, Dodge polled civil contractors about the challenges they were experiencing as a result of the pandemic. In March, less than half (43%) of civil contractors believed high material costs had impacted or would impact their projects. At this point, as many were finding  some consumer goods returning on shelves more regularly, construction was still experiencing issues sourcing materials — 71% of civil contractors experienced issues sourcing materials, and 76% were concerned with material costs. Q1 would be a mere preview of the two issues that would continue to plague commercial construction for the rest of the year.

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