South Carolina Construction Starts are Down
- Mid-year statewide construction starts in key sectors totaled $1.4 billion, a $453 million decrease compared to mid-year 2021. Pre-development indicators appear favorable for future growth, however, data showing the effect of rising interest rates is not yet available to allow analysis of the impact.
- Material costs are still increasing, but the rate of increase appears to be cooling. A decrease in construction starts and stabilization of material costs may exert downward pressure on construction pricing, albeit from an elevated point of beginning.
LCK Construction Tip: Material lead times continue to exert pressure on construction schedules. While lead times for some materials have improved, the issue persists for many necessary components, chiefly most types of electrical gear and equipment. These realities put the timely completion of upfits and short-duration projects at the highest risk. Owners should be clear with schedule expectations and be willing to fund early procurements.
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