NEW YORK--(BUSINESS WIRE)--Linesight, a global construction consultancy firm, sees construction commodity prices in the United States declining in 2022 after experiencing hyperinflation earlier this year. It also expects total U.S. construction spending to top $1.707 trillion in the new year, a nearly 4% increase from 2021. The findings are part of Linesight's third-quarter Commodity Report and price forecast, based on interviews with nearly 160 industry experts across the globe.
From late 2020 to mid-2021, commodity prices for construction materials like lumber, steel, copper, and concrete surged to unprecedented levels. There were several factors behind the growth in prices. The pandemic disrupted production cycles and impacted the supply chain. Forest fires in the United States and Canada disrupted timber harvests and operations at sawmills. Strikes, labor shortages, and soaring energy prices affected the availability of both copper and steel products.
While many of these challenges are still present, Linesight sees declines in prices between the third and fourth quarters and will continue to see downward price pressures in 2022. Following are some highlights of the report.
Lumber prices jumped nearly 28% in 2021 compared to 2020 and were one of the most affected construction materials globally. However, as production ramped up throughout this year, prices declined. Linesight expects a moderation of lumber prices of over 5% compared to current prices in the new year.
Steel prices peaked at around $1,800/MT in July, a 200% increase from 2020, driven by demand for finished products like durable goods and automobiles. Linesight forecasts that prices will decline by 5% in 2022 as the U.S. steel industry remains insulated from the rise in energy prices.
"We see many of the inflationary pressures behind the surge in prices for construction materials easing significantly in 2022 as supply chain and labor issues get resolved," said Patrick Ryan, Executive Vice President, Americas, Linesight. "This decline in material prices will help sustain construction activity, which we expect to rise significantly in the new year."
Please request a copy of the report using the Linesight Commodity Report form here.
About Linesight
Linesight is a multinational construction consultancy firm with over 45 years' experience, providing cost, schedule, program, and project management services to a multitude of sectors including Life Sciences, Commercial, Data Centers, High-Tech Industrial, Residential, Hospitality, Healthcare, and Retail. Linesight's specialist project teams, each with specific skills and experience, provide better predictability of project outcomes, faster project delivery, greater cost efficiency, and maximum monetary value for its clients. For further information, please visit http://www.linesight.com