Is this the right time? With all the craziness around us, should we wait? What is going to happen in this political climate? Should we wait for material pricing to come down? Whether you are discussing a building project for your home or for your business, these are just a few of the questions that you are most likely asking yourself or your business team that you probably would not have been asking before a global pandemic.
Here are the hard facts about the current construction market:
- Building materials are more expensive than before the pandemic
- Building material availability is questionable
- Trade labor costs are higher due to a lack of qualified workers
- Buildable land is at a shortage (especially residential lots)
Market factors are always something you should consider when you approach any building project. The project must be financially feasible whether it is a home project or business expansion. I have seen it happen many times where a business or homeowner completes an amazing building project that over values the property and the equity does not increase exponentially. Or the project results do not increase efficiency or productivity. This makes the future financing more challenging or the appraisals weak when it comes time to sell.
Here are a few more questions that you will need to consider: What if we do not build the addition, new facility or remodel our current space? Will we lose market share because we do not have the capacity or efficiency? Will we lose good employees because our facility is not modern or safe? Are we losing property value by not making upgrades to keep our home competitive in the market? Ultimately the question becomes, what are the affects to the bottom line and growth if we do not upgrade to meet the market or our business’s demands?
This is where knowledgeable and experienced general contractor can help you answer those questions that will factor into your final decision. A quality contractor will not just want to build for you they will want to build with you. When you choose the right contractor, they will want to build a relationship of trust, so you know they have your best interests in mind. A contractor that has the customer’s best interest in mind will give you guidance before you make that financial dive into plans and permits and ultimately a construction project. Often times, it can take four months to a year (sometimes several years) to plan a project, complete engineering, obtain all the local and state approvals, get final permits before you drive the first nail or break ground. There is a good chance that, by the time you are ready to build, material pricing and availability will have changed. The benefits of good planning far outweigh the costs. Time is on your side! Be proactive and not reactive to the market conditions so you stay ahead of your competition.
I hear people say every day “We are living in crazy times”. These are “Crazy Times”, although we need to remember that this is not the first time our nation has been in “Crazy Times”. Just like the last season of “Crazy Times” we need to make informed decisions that consider all the factors. This approach will take the craziness out of “Crazy Times”.