How the Supply Chain is Affecting the Building Industry (and what it means for your home build)
The supply chain affects every business and consumer on the planet, and over the past year or so, we've all seen what happens when it breaks down.
Much like the great toilet paper shortage of 2020, but on a larger scale, we are now seeing a nationwide shortage of building materials, which is putting pressure on Australia's construction industry. Unexpected hiccups in the supply chain, labour shortages and unforeseen delays have caused projects to exceed the initial timeframe.
The building industry has been impacted in massive ways. Delays in the supply of building materials are emerging across the building industry due to the following factors:
- Near-record new home approvals due to government 'HomeBuilder' and 'Building Bonus' schemes (an 89% increase in dwelling building approvals compared to 2019-20)
- Supply chain disruptions including staff shortages, and increased freight times on international imports, as a result of COVID-19 pandemic
Currently 93% of WA builders report building product delays, especially in steel and timber, as well as lengthy delays being reported in accessing all trades in WA, with the longest delays reported for bricklayers, carpenters, and structural steel workers.
No doubt, it's a frustrating situation for all parties involved!
For more detail, keep reading...
First, let's take a look at some materials currently in short supply for home builders around the world:
- And much more
Material shortages not only stretched out timelines on projects like your new home build, they've also unfortunately made a lot of these materials cost more, that home builders often have no choice but to pass higher costs on to the house buyers.
We have put together this article to help you understand specific reasons behind the time delays and price rises you might be experiencing in 2022.
All homebuilders in Western Australia, like Evoke Living Homes, have been dealing with the same supply issues, which we'll explain in the rest of the article:
Material shortages (steel, concrete, melamine, and more)
Steel, which is used to manufacture our wall frames and roof trusses, has suffered massive international supply chain issues due to the pandemic. The combination of increased demand, and supply issues, meant that the cost of steel has increased approximately 50%. Most builders, like Evoke Living Homes, have tried to absorb higher steel costs instead of raising product prices, but some increase was inevitable.
Our pre-stressed concrete bases have seen increased manufacturing lead times, due to high demand of concrete. Insulation (used in walls and ceilings to increase energy efficiency), and melamine (the raw product used for cabinetry door fronts and shelving) are key parts of every home, and have suffered the same delays and price rises.
What this means for you
In short, the market for homes has been hit by a perfect storm. While building your home may seem like it’s taking longer than you expected, we want you to understand that everyone at Evoke Living Homes is working as hard to build your new modular home as soon as possible.
We understand new home owners want their new home right now! But the reality is we can't work any faster if we want to maintain our industry leading standards and quality for manufacturing.
Home builders and manufacturers are doing their best to make the best of these supply chain issues, and obstacles of the entire industry, when they are simply out of our control.
So, whether you're planning on building your new home with Evoke Living Homes or from another builder, we can only say this:
Hang in there, it will be well worth the wait!
The memories will soon be made. They may not start being made when we all hoped they would, but they will nonetheless.
Let's keep pushing through this together and continue to do the very best we can.
As always, you can count on us to continue to execute our build and delivery process at the highest industry standards. With an emphasis on honest and transparent communication, care for our clients, and expertise, we can help you through these difficult times as best as we can!
Why modular remains the more efficient way to build
In an industry that is seeing unprecedented construction delays, modular remains an ideal option for new homes in regional WA due to it's highly efficient manufacturing process. Unlike many builders in WA, when building an Evoke modular home, you will get transparent pricing, high quality and trusted trades, faster build times and stringent quality control.
Controlled build times, costs, quality and environmentally friendly. Build better and faster with Evoke Living Homes.
To learn more about building a modular home in 2022 contact us today! Or for updates on current building timeframes call us on 1300 138 653.