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4 Strategies to Fight Inflation in the Construction Industry

From the gas station to the grocery store, it’s impossible not to notice the uptick in prices. Unless you are living under a rock [Through multiple news sources], it’s become common knowledge that inflation is affecting costs in the United States.  From materials, gas, goods and services, and food, prices have dramatically increased. According to AXIOS data, inflation surged to 8.5% in March 2022.  This is the largest level since 1981 as the price of lumber, steel, copper, and aluminum reached an all-time high across the globe.  The COVID-19 pandemic caused closures and delays at international factories that produce most of these items. As a result, we are seeing the supply of construction materials dramatically decreased in the U.S, driving up the prices of available materials. At KBD Group, we understand that the U.S. construction industry is dependent on foreign construction materials, and we have worked diligently to implement many strategies to decrease the impact of inflation.  We are committed to doing everything we can to keep prices stable, so that customers can budget effectively.

How Inflation Effected Construction:

Due to inflation, we have experienced record increases for material costs which has created new challenges in the industry. As supply chain remains volatile due to the lack of supply and a high demand, vendors are having a hard time keeping up.  Products are being consumed as soon as they are manufactured, causing a wait list which ultimately effects completion schedules.  Many warehouse construction projects are delayed, causing shipping containers to remain docked awaiting a facility to place their products. In addition, the cost of labor has increased, as workers demand higher wages in order to keep up with the cost of living. As a result, inflation is having a significant impact on the construction industry, making it more expensive to build new warehouses and factories.

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Producer prices for final demand increased 10.0% during the 12 months ended in February 2022.

4 Ways KBD Group Fights Inflation

Although inflation may have caused many constructions projects to slow down throughout the US, there has been an opposite effect for our business.  Since 2020, we have set new records in the number of projects we are building. We understand that inflation is a constant concern for businesses, particularly those in the retail and manufacturing sectors. As prices rise, it becomes more difficult to maintain margins and profit levels. At KBD Group, we have used a number of strategies to fight inflation and keep prices low for our clients. This ensures that our prices are always competitive and that any increases are kept to a minimum.  Below are four strategies we want to share to help you make an informed decision about your next construction project.

#1 Get Trade Partners involved early.

When it comes to our construction projects, the success of the overall venture depends heavily on the performance of our licensed and insured trade partners. We understand the wrong trade partners can delay or jeopardize the quality of the final product. Our experienced trade partners have a proven track record of delivering quality work that matches the project’s scope and size. We get them involved early to assure the cost and availability lines up with our client’s goals and budget.  We take the time to carefully choose our partners to ensure that your construction project is in good hands.


#2 Combining Construction Projects

As a leading construction company, we specialize in bundling multiple construction projects together. Combining construction projects has many benefits. It allows construction workers to complete projects more quickly, which saves on labor costs. Additionally, it can minimize the disruption to traffic and pedestrians, as well as reduce the amount of dust and debris in the air. Combining construction projects also allows for better coordination between different crews and contractors, which can lead to a smoother overall construction process. In addition, bundling construction projects together can sometimes lead to discounts from suppliers. When done correctly, combining construction projects can save time, money, and headaches.

#3 Finding Alternate Construction Materials

KBD Group understands that one of the main concerns during construction is the high cost of materials. In order to save on costs, our preconstruction team look for alternative materials that can be used in projects. For example, we found that utilizing recycled materials can be just as effective as using new materials, and often at a fraction of the cost. KBD Group is always looking for new ways to reduce waste, which further helps to save on costs. As a result of KBD Group’s efforts to find alternate construction materials, we are often able to offer clients significant savings. This attention to detail has helped KBD Group become one of the most trusted names in the construction industry.

#4 Our Advantage

KBD Group has a long-standing reputation as a reliable and reputable construction company. We have built our business on the foundations of trust and transparency, and our commitment to our clients is evident in everything we do. One of the ways we demonstrate this commitment is by securing construction materials early. This gives us a significant advantage over our competitors, who often struggle to source the same materials at short notice. It also allows us to keep costs down, as we are able to take advantage of early bird discounts and bulk purchase deals. Our clients can be confident that KBD Group will always go the extra mile to secure the best possible price for their project.

We’re ready to help

At KBD Group, we are ready to help you with your next construction project. Despite the current inflationary environment, we are confident that we can provide you with a high-quality product at a competitive price. Our team of experienced professionals has a proven track record of delivering projects successfully, and we are committed to not only meeting, but exceeding your expectations. We pride ourselves on being a one-stop shop for all your construction needs, and we will work with you from start to finish to ensure that your project is completed on time and within budget. Contact us today to learn more about how we can help you build your next project.

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