WASHINGTON (May 28, 2021) — President Biden announced in a speech last week that he intends to take steps to combat supply issues plaguing the construction industry.
“In the coming weeks, my administration will take steps to combat these supply pressures, starting with the construction materials and transportation bottlenecks, and building off the work we’re doing on computer chips,” Biden said. “We’re also announcing new initiatives to combat anti-competitive practices that hurt small businesses and families.”
The Biden administration is reviewing supply issues next week, particularly in regard to lumber and steel, both of which are facing significant shortages due to transportation issues and price hikes. Computer chips, electric-vehicle batteries, pharmaceuticals and minerals used in electronics are also a major area of concern.
“You can’t reboot a global economy like flipping on a light switch. There’s going to be supply-chain issues - price distortions on the way back to a stable and steady growth.” Biden said.
Studies from the Associated General Contractors of America (AGC) and Associated Builders and Contractors (ABC) have both suggested that rising materials cost are one of the primary issues for the construction industry in 2021.
“Over the past several weeks, the major challenge facing the U.S. nonresidential construction industry has shifted from COVID-19-induced disruptions to the ongoing surge in materials prices,” said ABC Chief Economic Anirban Basu. “Nonresidential input prices have surged, and much of that increase has occurred since the start of 2021.
