A Look Back on 2021
For most of us, year’s end is a time to look forward to, whether it be to celebrate holidays or for no other reason than to tick off another lap around the sun completed with the next fast on its heels. For us here at Specialty Home Improvement, it’s as much a time of reflection as it is a time of prediction. What lessons can we take from the past year to work with our clients and trade partners in the coming one?
What we saw in 2021:
For a year completely submerged in the Covid era, we saw a substantial impact in the residential construction industry. Material and supply chains were disrupted causing delays in deliveries. As well, we experienced delays in permit and plan reviews and approvals at the municipalities. Labor shortages were prevalent as the number of available skilled tradesmen continued to diminish at a rate similar to that we’ve been experiencing for some time and project volume/workload continued to increase.
While there were price increases associated with the supply and demand issues of materials and labor, all in all, they were only slightly higher than the average cost increases that we’ve experienced in the residential sector the last 4-5 years. There were spikes on certain items, but as we’ve watched the supply chain begin to right itself, those spikes have appeared to begin to wane. Municipalities have also implemented new systems for processing permits and plans and, while they are currently still taking a bit longer to process paperwork, once they get the new systems running smoothly, the long-term outlook is that future permit and plan approvals look to be more efficient than the older methods.
What we envision for 2022:
With the extreme affordable housing crisis in California in combination with more people mindful of needing functional multi-purpose spaces due to working full or part-time from home, residential home construction and improvement projects continue to increase in volume. Prices for construction should continue to level out as the supply chain comes back online, however, we will continue to experience shortages in skilled labor which will affect both costs and scheduling.
From Us to You:
Here at Specialty Home Improvement, we believe that with continued skilled project planning and management as well as ongoing communication during projects, delays in launching and completing projects should remain manageable. We’ve modified our design, permitting, and construction processes to be as efficient as possible during the current times. All in all, there’s no better time for our clients to begin their projects, as our project pipeline is close to capacity and looks to remain that way farther than we can predict into the future. Pricing has been and always will be a factor in budgeting projects, but overall, there is no data indicating a substantial drop in construction costs in the coming year.
Please accept our warmest wishes for you and your families as we enter a new and hopefully, brighter year!