The last few years have been far from normal due to the pandemic. Construction costs have been one item that has seen a dramatic increase. This is a result of a sharp increase in demand for building materials combined with supply chains struggling to keep up. In addition, a booming construction industry has resulted in higher labour costs due to a shortage of skilled workers. Together, these factors have had a significant impact on construction costs as illustrated below.
So what does this mean? The consensus is that costs are up across all industries. The extent of the increases are dependent on:
2) Industry Sector (Residential, Commercial, Industrial, etc.)
3) Construction Type (Wood Frame, Steel, Concrete, etc.)
4) Geographic Location
5) Asset Type (Buildings, Machinery and Equipment, Mobile Equipment, etc.)
To gain a better understanding of these increases and their impact on your insurable values contact us at https://suncorpvaluations.com/contact-us/