Construction material prices skyrocketed during the pandemic due to shortages and travel limitations. The rise in material prices also increased the price of completed projects, driving up property prices. Material shortages and supply chain issues persisted for some time after the pandemic. Even as the country was emerging from the worst of the shutdowns, materials prices were still high due to backlogs that had built up at the peak of the pandemic.
However, material cost pricing is starting to show some promise after years of high prices and widespread shortages. Overall, construction material prices and projects are starting to take a downturn for the first time since the pandemic. These reduced costs open up different opportunities for construction companies, allowing them to take on more projects, improve the quality of their builds, or buy more equipment to expand their fleet.
How Pricing Is Affecting the Construction Industry
Compared to the previous year, material prices in 2023 have finally decreased. The cost to build an entire project decreased by 0.9% for overall construction and 0.6% for non-residential projects compared to March of last year. Despite the price drop, overall prices are still higher than before the pandemic. However, the reduced costs show signs of improvement for the coming months and years.
Construction material prices also fluctuate more from month to month. Even with the current price drops, there’s the chance for price increases in the following months or years that will affect a company’s ability to obtain quality building materials at a good cost.
What This Means for Construction Companies
Lower material prices mean construction companies could source necessary components for their construction projects at a reduced cost. The less that’s spent on materials, the more you can allot to other resources, including labor or equipment. Construction companies can bid for more projects, helping them to diversify their portfolio and increase their revenue.
Despite these price decreases, construction companies should remain vigilant. A downturn in prices doesn’t mean that these numbers won’t increase again, so it’s always best to watch the market when planning the future of your business.
How Custom Truck One Source Can Help
Whether material prices continue to decrease or there’s uncertainty about how the market will shift, Custom Truck One Source can help. We have the equipment you need to complete your work at a price you can afford. We offer new, used, and rental options, so you’re not limited to a single price point. We also stock various makes and models with different specs, so you have plenty of options to choose from.
We also offer flexible financing and leasing solutions, so you never have to go without the equipment you need. The financial solutions we offer include:
- Financing: If you want to own your equipment, we offer flexible financing options with low monthly costs. You can receive up to 100% financing and fixed monthly payments, so you never have to worry about sudden price increases.
- Leasing: Renting or leasing equipment is an effective solution if you only need to temporarily expand your fleet. You can choose from our various leasing options, which include true leases, full payout leases, fair market leases, and more.
- Customization: We also offer custom solutions to meet your specific financing needs. Our customized financing solutions can help you optimize your cash flow, protect against inflation, and maximize your tax benefits. We can help you find a financing or leasing option that works best for your business so you can stay on budget without sacrificing quality.
With the uncertainty in construction material pricing, investing in the equipment you need for your business can be challenging. However, Custom Truck One Source offers equipment at a price you can afford no matter your budget, whether you’re looking for new, used, or rental solutions.
Expand Your Equipment Fleet With Us Today
Custom Truck One Source has all the building supply and construction equipment you require. We have everything you need, from excavators to dozers and forklifts to trailers, to help you with your next construction project. Our team can help you navigate rental and financing contracts to help you stay within budget so you can continue to take on new projects.
Since 1996, we have been dedicated to helping our clients thrive, and our team of professionals at any of our 35 convenient locations will work with you to help you find exactly what you need. For construction and building supply equipment that lets you get the job done fast, count on us at Custom Truck One Source. Contact us today to learn more about our equipment and financing options to get started!